A Global Collaboration for DEI-Driven Investment Strategies
Denominator has announced a new partnership with FINBOURNE Technology, a leading SaaS investment data management provider. This collaboration aims to support the global Buy Side as it faces growing demands for Diversity transparency, driven by a new generation of value-based investors.
Addressing Regulatory and Investor Expectations
The integration of Denominator’s DEI data into FINBOURNE’s flagship investment management platform, LUSID, comes at a crucial time. The Principles for Responsible Investment (PRI), a UN-supported network of institutional investors with a combined $130 trillion in assets under management, recently called for signatories to enforce DEI reporting across investment holdings and supply chains. This move is expected to increase scrutiny from regulatory bodies worldwide.
Further amplifying these expectations, the UK Financial Conduct Authority (FCA) recently launched a DEI policy consultation, signaling that regulatory focus on DEI will continue to intensify. As a result, asset managers must adopt a more granular and holistic approach to evaluating DEI performance across their portfolios.
Turning DEI Challenges into Investment Opportunities
Despite the growing emphasis on DEI, many asset managers struggle with aggregated ESG ratings and fragmented methodologies, often leading to a narrow focus on gender diversity at the board level. The partnership between FINBOURNE and Denominator seeks to transform this challenge into an investment opportunity, helping firms:
- Make data-driven investment decisions
- Enhance transparency and accountability to investors
- Actively engage with companies to close the DEI gap
Creating an Investable Universe with Comprehensive DEI Data
Through this integration, FINBOURNE’s clients can seamlessly access Denominator’s extensive DEI dataset, which covers:
- 15,000+ public companies
- 1.5 million+ private companies
- 250+ unique DEI variables across 15+ dimensions (gender, race, age, nationality, education, disability, health, sexuality, etc.)
Built on internationally recognized frameworks such as the UN Global Compact’s Sustainable Development Goals (SDGs) and World Economic Forum’s Gender Parity Index, Denominator provides the most comprehensive DEI dataset available.
Asset managers can score, analyze, and forecast DEI performance within their portfolios, leveraging both traditional and unique DEI indicators. This includes:
- Board and executive-level gender and ethnic diversity
- Cognitive diversity, such as educational backgrounds across leadership teams
Enhancing Trust and Transparency for End-Investors
By integrating DEI data directly into investment operations, asset managers and end-investors can ensure that funds are:
- Accurately monitored and reported based on mandated outcomes
- Tracked over time to measure progress at both an individual attribute level and across entire portfolios
- Customizable, with the ability to apply Denominator’s proprietary scoring or integrate firm-specific methodologies
Driving Competitive Investment Strategies
The Denominator-FINBOURNE partnership broadens DEI accessibility within the global investment community, helping asset managers overcome current data challenges while identifying new investment opportunities. With these enhanced capabilities, firms can:
- Launch new ESG funds and products with a DEI-specific mandate
- Tap into underserved markets, such as the rise of female investment platforms
- Develop fact-based, forward-looking investment strategies
Executive Insights on the Partnership
Anders Rodenberg, CEO of Denominator:
"We are truly excited about this partnership with FINBOURNE Technology. The integration of our exhaustive Diversity, Equity & Inclusion data will enable the global Buy Side to harness new and customized investment strategies that appeal to investors and deliver a competitive edge. Just as the ‘E’ in ESG has evolved, we aim to elevate the ‘S’ through active engagement with global companies, making DEI a true priority for businesses and society."
Matthew Luff, Head of Partnerships at FINBOURNE Technology:
"Partnering with Denominator empowers our clients with high-quality data to create and manage innovative portfolios that cater to previously underserved investor segments. Unlike environmental measures, which can be abstract, DEI is something we can visually recognize in our workplaces. Through this collaboration, our clients gain actionable insights to invest in companies delivering strong returns while committing to DEI values."
Conclusion
As DEI expectations rise among investors and regulators, asset managers need accurate, standardized, and actionable DEI data. The Denominator-FINBOURNE partnership delivers a powerful solution that enables firms to integrate DEI into investment strategies, enhance transparency, and capitalize on new market opportunities.
For more information, visit Denominator.com or FINBOURNE.com.
