Apollo for a sustainable and a responsible investment strategy

The Apollo Asset Management team has been assisting financial institutions in the management of their assets for many years.
A l’heure ou un français sur deux déclare prendre en compte les enjeux du développement durable dans ses choix d’épargne (AMF 2020 study), la prise en compte d’indicateurs ESG dans l’investissement financier est devenu incontournable. Le marché des fonds ISR et les investissements intégrant les critères ESG sont en plein essor dans la gestion des portefeuilles des clients.

Apollo's solutions, already essential for their efficiency, are constantly adapting to the changing environment of the financial world. This is why our teams have developed a solution to support sustainable and responsible investment strategies.

Cette solution permet aux investisseurs d’intégrer les critères ESG et les fonds labellisés ISR ou Greenfin lors de l’allocation d’actif.

The Apollo offer is capable of supporting the manager in his sustainable and responsible investment strategy by proposing :

• A panel of ESG indicators
• Decision support functions
• As well as monitoring and reporting functions based on this vision.

We describe below the features of our offer Apollo PWM for the deployment of sustainable and responsible investment strategies.

Apollo PWM, a solution for sustainable and responsible investment choices

Integration of different sustainable and responsible investment indicators

There are over 135 ESG scoring organizations, rankings and ratings of a company or fund's ESG performance.
Apollo offers the means to integrate ESG scores from these different providers: Morningstar, Bloomberg, Dow Jones, Sustainability Index and many others.
Since the monitoring of investment strategies is at the heart of asset management, Apollo also offers its clients the possibility of integrating ESG indicators developed by themselves.

Here is an example of how ESG criteria are reflected in asset characteristics.

In addition, the solution will be able to integrate the different types of scoring associated with the indicators.

Below is an example of the restitution of asset risk ratings given by financial rating agencies.

Monitoring of portfolio development and investment choices

Our Apollo solution offers managers the possibility to manage the evolution of their portfolios by integrating different investment strategies that include ESG criteria:

• Exclusionary strategies that apply restrictions to the acquisition of assets linked to sectors such as arms, tobacco, thermal coal extraction, etc.
• Positive bias strategies that exclude the above sectors and then favour portfolio allocations to stocks with the highest ESG scores.
• Best-in-class strategies aiming to favour the leading companies in a sector in terms of ESG.
• But also Thematic strategies for investment approaches in themes or assets specifically related to sustainability.
• Or Impact strategies where the main objective is to create specific positive environmental/social benefits while delivering financial performance.

These strategies can be used as a single strategy or as complementary strategies.

The management of SRI funds will operate on the same principle, with managers being responsible for choosing independent or complementary criteria/strategies with regard to ESG criteria.

A solution for the audit of ESG portfolios and SRI funds

We offer a set of investment monitoring and auditing tools for ESG portfolios and SRI-labelled funds through the following elements:

• A customizable dashboard
• Automated management reporting

The dashboard will allow the manager to follow the alerts defined by the management company with regard to ESG criteria.
Apollo PWM will notably provide the following alerts:

• Allocation overrun alerts
• ESG index value threshold

See below for two examples of how these alerts are displayed.

It is also possible to combine the ratings of several ESG indicators and control that the percentage of ownership linked to the rating strategy does not exceed a threshold percentage.

Here is an example of restoring constraints related to the percentage of ownership and the rating strategy.

Our Apollo solutions also provide managers or end clients with with automated management reports . The latter will be able to integrate ESG criteria and SRI-labelled funds.

A solution for monitoring the performance of ESG investments ESG

Apollo also has a portfolio performance monitoring module. This allows for a comparison of the performance and allocation of ESG portfolios and funds. For this purpose, one or more reference funds, portfolios or benchmarks are used to evaluate the performance of the portfolios.

Apollo's solutions are available to support financial institutions in portfolio management and investment choices.
The Apollo PWM offer is very efficient and supports our clients in the daily management of their assets by meeting the current needs and demands of Asset Management. The integration of ESG criteria and SRI labelled funds confirms the effectiveness of this offer.

Statement of account in advisory portfolio management

In advisory portfolio management, the guidance of the client by the advisor is at the heart of the investment management process. Client portfolio management and analysis are based on the client's knowledge, expertise and understanding of the components of their portfolios. The client experience in advisory portfolio management must therefore inform the client. This is why it is necessary to analyse the client's assets through the client report, a statement of situation published and given to the client.

This review provides a synthetic, dynamic and relevant view of the client's portfolios. Therefore, we give visibility to the following elements concerning each portfolio (regular accounts, life insurance contracts) :

• Performances
• Evolutions
• Asset allocation
• The composition of its assets

Below we describe the relevant sections that should appear in a client report.

The valuation of portfolios within the client statement of account.

The reporting should value the status of regular accounts, shared saving plans and life insurance contracts held by the client.
For each portfolio the value of the assets is indicated as at the relevant quarter.

Here is a fictitious example of a portfolio

Analysis of the investment profile and the composition of the assets in the statement of accounts.

Analysis of the investment profile and the composition of the assets in the statement of accounts.

We remind the client of their risk profile and provide them with the investment guidelines for their profile type.
Here is an example of a feedback for a dynamic profile.

Analysis of the asset allocation in the statement of account

In order to analyse the client's investments, our situation report presents a graphical breakdown of the assets by asset class and by geographical area.

Position inventory of assets in the statement of account

Our statements present a position inventory per asset with a breakdown per asset and an overall summary (net assets and unrealised gains or losses).

Performance and evolution of the portfolios

We help the client to visualise the performance of their portfolio through our statement of account. This is done by providing valuation and performance over the past month, quarter and year-to-date.
Here is an example of performance reporting at the end of the fiscal year.

Setting up and customising the statement of account

Les Apollo's solutions can be adapted to the graphic charts of management companies. To do this, we offer customisation solutions that allow specific elements to be imported:

• The logo
• Legal notices
• And the different sections useful for consultation purposes.

Here is an example of a section that can be added to the report.

Apollo Asset Management has been able to increase its expertise in advisory management by producing and publishing situation statements.
These publishing solutions allow the management company to communicate frequently with its clients on the evolution of their portfolios.
To simplify this process, Apollo Asset Management also guarantees the following steps:

•  The mass generation of reports
•  et la transmission au service éditique de la banque afin que chaque client de la société de gestion puisse recevoir son rapport à la fréquence souhaitée.

Apollo's reporting and desktop publishing solutions are extremely powerful and regularly used by our clients, making us a leader in the field.