White Paper
Introducing the ESG Cost Plus + Model
Most asset manager ESG Franchises have not been tested by a Bear Market. The interaction between MiFID II, increasing ESG Regulation and prolonged market volatility is uncharted territory, creating new challenges
The ESG Cost Plus + Model creates a sustainable ESG funding structure, allowing ESG/Stewardship strategies the time they need to achieve their objectives.
This approach also boosts client transparency, manager profitability and the retention of ESG staff. It deepens client relationships based on mutually agreed ESG/
Stewardship objectives.
Frost Consulting is a leading authority on the global investment research procurement value chain and related market structure/regulatory change. The rapid evolution of regulatory/ asset owner oversight of the research ecosystem has financial, operational and fiduciary implications for all market participants.
Frost assists a wide variety of clients in developing commercial and operational strategies to maximize revenue/alpha generation, optimize distribution and mitigate risk in a rapidly changing commercial environment.
Alpha Generation
Ontology-based semantic research management solutions.
Research Valuation
Models to develop asset-manager specific research valuation frameworks. FrostRB is a highly customizable Research/Valuation software platform that allows asset managers to construct multi-asset class research budgets to meet European regulation.
Research Payments
Post MiFID II, the only way for European managers to use commission to buy research will be via CSA funded Research Payment Accounts (RPAs). Managers with a limited CSA program will have to rapidly construct a CSA infrastructure to handle the vast majority of their equity trades. Frost is a market leader in integrated vendor-neutral CSA solutions.
MiFID II Research Process Diagnostic
“Audit” of the manager’s current research procurement process to assess preparation and likely compliance with MiFID II requirements.
Risk Mitigation
Regulatory/client reporting, CSA optimization.
Managing Regulatory Change
The origins of the current economic and regulatory model governing the institutional research business date back to the (US) Securities and Exchange Act of 1934. This venerable framework is on the cusp of transformative change. Frost helps asset managers, plan sponsors, banks and other market particpants understand and capitalize on regulatory change.
Frost Consulting is an active participant in industry and regulatory discussions on related issues.
Leveraging Applied Analysis
Frost employs proprietary customizable data/analytical tools to model the revenue, cost and ROI implications of various strategy options. These are combined with substantial experience with software vendors in related disciplines to create cost-effective solutions that deliver comparative advantage.
Our Services
Frost has specific solutions for: Asset Managers/Asset Owners Investment Banks/Brokers Research Content Producers Exchanges/MTFs Technology Companies
Sample Engagements
Get an idea of our work by taking a look at selected reference projects.