Pathstone Federal Street, a US-based firm offering family office services and customised investment advice, has launched a new environmental, social and governance (ESG) measurement tool.
The new tool is part of the firm’s portfolio execution platform—P-Cubed. It leverages public and proprietary datasets, which rank firms based on various ESG considerations, as well as other disclosures, to develop an ESG scoring methodology.
In order to create an average ESG score, the company will utilise ESG scores of underlying firms and the weight of such firms.
The ESG scoring methodology adopted by the tool covers a range of asset classes including equities, fixed income, hedge funds and private equity.
Pathstone president Mathew Fleissig said: “We developed P-Cubed to provide clients with meaningful tax and expense efficiencies, but now it is much more than that. Today, P-Cubed delivers the power to strategically customise and align a client’s portfolio with their goals in ways we believe were not possible before. This is a new and cutting edge tool for the industry.”