Partnership addresses growing demand for customized sustainable passive investments driven by meaningful quantitative data
MerQube, a pioneer in technology for next generation index-linked investing, has joined forces with Impact Cubed, a leading provider of ESG data and investment solutions, to bring bespoke indices driven by factual ESG impact data to the $17 trillion passive investment market.
By combining state-of-the-art technologies in ESG data and index creation the partnership will provide investors with bespoke, data-driven ESG passive investment strategies executed with unparalleled precision. The partnership offers a solution to the growing need for customisation and factual accuracy.
Bespoke indices with impact
In an investment climate where transparency and authenticity in ESG reporting have become paramount, the partnership’s unique offering will provide:
Tailored Strategies: Leveraging Impact Cubed’s factual ESG data, and MerQube’s next generation fintech capabilities that enable bespoke approaches, investors can now create indices that mirror their precise sustainability goals, across 100+ ESG factors
Rapid Implementation: MerQube’s technology ensures custom strategies are executed efficiently, providing real-time adaptability to the dynamic ESG landscape
Empirical ESG Criteria: The partnership ensures that each index is grounded in empirical ESG data, offering a clear and measurable impact that can be reported to both clients and the regulator
A cornerstone of this collaboration lies in the depth and precision of Impact Cubed’s ESG data. An antithesis to ratings and scores, their data is factual and outcome based – covering every listed company globally. Their datasets span climate, EU regulation, SDG alignment, and more – enabling the creation of indices that are not only tailored to the specific sustainability criteria of investors but also equipped with the fidelity necessary for sophisticated index-linked ESG investment products.
When enhanced by MerQube’s cutting-edge index calculation capabilities, investors will have access to the most precise, actionable ESG insights available. This combined approach will, for example, enable thematic customized indices in the ESG space that deliver on rising investor requirements for products with high focus on specific ESG themes such as clean water and biodiversity.
Vinit Srivastava, CEO at MerQube said:
“The evolution of ESG indices demands next generation products that are transparent and bespoke. We are excited to combine our sophisticated indexing capabilities with Impact Cubed’s factual ESG data, delivering indices that not only reflect but propel investors’ sustainability agendas.”
Libby Bernick, CEO Impact Cubed, said: “This partnership encapsulates our commitment to improving transparency for investors using factual ESG data. Together with MerQube, we’re setting a new benchmark for ESG investment strategies that are as impactful as they are individualized.”
About MerQube
MerQube is an innovative technology provider offering design and calculation solutions for rules-based investment strategies and passive solutions. Launched in 2019 by a team of index industry veterans and technology experts, MerQube was created as a technology-driven answer to the most complex rules-based investment strategies. MerQube today calculates a wide variety of strategies, ranging from defined outcome to volatility and risk control, from end-of-day to real-time calculations. MerQube’s capabilities extend to any rebalancing schedule, including intraday, and incorporate sophisticated TWAP and VWAP algorithms.
About Impact Cubed
Drawing upon their direct sustainable investing experience, Impact Cubed delivers actionable ESG data & investment solutions. Their ESG data facilitates comprehensive analysis and reporting for both clients and regulators – and their proprietary 3D approach introduces an ‘impact’ dimension to the conventional risk-return paradigm, empowering investors to design bespoke sustainable strategies that optimise impact and minimise risk.