Nexus Frontier Tech and APS Asset Management are jointly developing a platform for analyzing environmental, social and governance (ESG) data on companies with headquarters or significant business activities in China, Hong Kong, Macao, Taiwan and Singapore that issue shares and share-linked securities.
The implementation of sustainable investments in the asset management industry has historically been mired by multiple data challenges, including poor quality data, low data availability, and lack of standards and frameworks. harmonized or interoperable ESG disclosure.
The partnership between Nexus FrontierTech and APS Asset Management aimed to address these challenges, and together the two entities are currently conducting a proof of concept (PoC) to demonstrate the technical feasibility and potential business value of combining artificial intelligence (AI) with APS. ‘ “Four alpha-hats” investment approach, designed and built on an ESG platform that leverages an integrated, scalable, cloud-based technology stack.
With a modular API-ready infrastructure and native AI capabilities, the ESG Platform has the potential to scale to cover additional markets, integrate with various data providers, such as the Greenprint ESG Registry, and serve as a data aggregator for asset management. -users.
Successfully automating various tedious manual research workflows is expected to increase investment analysts’ productivity by 50-70%, freeing them up to focus on higher value-added tasks and functions, such as fundamental analysis.
The project received the award Monetary Authority of Singapore‘s (MAS) Financial Sector Technology and Innovation (FSTI) POC grant in June this year and will provide financial support for the experimentation, development and diffusion of emerging innovative technologies in the financial services sector.
Speaking on the development of the first real-time AI fundamental ESG system in China, APS Asset Management CIO, wong Kok Hoiconfirmed the firm’s belief that the platform is “a powerful system developed by combining Nexus AI’s expertise and APS’ decades-long experience in fundamental analysis of Chinese companies.”
Adding to this, Danny GohCEO of Nexus FrontierTech, comments: “The solution will link international ESG reporting standards, disclosure practices in developing countries like China and investment management approaches in Singapore, adding to the growing pool of intellectual capital and capabilities of Singapore as a global center for sustainable finance. .”
The platform was also recognized at the Global Fintech Hackcelerator 2021, earning a position among the top 10 finalists in the local program.
Nexus FrontierTech and APS Asset Management continue to develop the ESG platform collaboratively, evolving it to expand total addressable market data and creating a new ESG data research management repository.