Ethic, the tech-driven asset management platform that powers personalization for advisors, today announced it has won Celent’s Model Wealth Manager 2022 Award in the Products and Platforms category. Ethic was recognized for its impact reporting feature, which seeks to provide advisors and their clients with greater transparency as to the impact their investments are having on their chosen environmental, social, and governance (ESG) causes.
Celent, a global financial services research,and advisory firm, each year recognizes financial institutions as ‘model wealth managers’ for their outstanding technology initiatives. Nominations undergo a rigorous evaluation process, as part of which they are judged by Celent analysts against three core criteria: demonstrable business benefits of live initiatives, the degree of innovation relative to the industry, and excellence in technology or implementation.*
Ethic’s visually appealing impact reporting feature incorporates and analyzes thousands of sustainability indicators from multiple data sources, as well as reputable academic and statistical research, to help advisors and their clients better understand how their portfolios are affecting the issues they care about most. Clients can learn how their investments have helped them avoid ownership of companies’ undesirable activities and outputs relative to the benchmark. The subsequent metrics are presented using easy-to-understand graphs and tangible equivalencies, e.g., the number of scuba tanks filled with clean air or the equivalent number of miles driven.
“We are delighted that Celent has recognized the value our impact reporting delivers to financial advisors and their clients,” said Alex Laipple, head of business development at Ethic. “Amid growing investor demand for ESG solutions, Ethic helps financial professionals to cut through the industry noise and greenwashing. We’re committed to supporting advisors at every stage of their sustainable investing journey, offering them resources that position them to confidently navigate values-driven conversations and deepen their relationships with end clients.”
“The Model Wealth Manager Awards recognize the institutions that are using technology to change the face of wealth management for the better,” added Jean Sullivan, head of wealth management at Celent. “Celent identified Ethic as a category leader whose exemplary implementation and commitment to best practices stand to have a truly meaningful impact on business outcomes and the wider industry.”
Ethic’s direct indexing platform combines data science and technology to help advisors build custom separately managed account (SMA) portfolios that reflect investors’ values, financial goals, and tax preferences. For more information about Ethic, please visit http://www.ethic.com.
Ethic is a leading independent provider of direct indexing strategies for financial intermediaries. Its scalable technology platform enables advisors to create custom portfolios that reflect clients’ values, financial goals, and tax preferences—all while seeking to minimize tracking error against the underlying benchmark. Ethic also offers an array of supplemental features, including data-rich impact reporting and educational materials, that position advisors to lead meaningful conversations around sustainability.
The Ethic offering is available to advisors custodying with Fidelity, Charles Schwab / TD Ameritrade, U.S. Bank, Northern Trust, or Pershing. The company is backed by investors including Oak HC/FT, Nyca Partners, Fidelity Investments, and ThirdStream Partners. Ethic is an SEC Registered Investment Adviser based in New York City.
*Additional information regarding the Celent Model Wealth Manager Awards program and its judging criteria can be found here.