SinCo FRAMEWORKS and METHODS
SinCo assignments are always unique based upon the needs of our clients. We use the proprietary SinCo 4M four-factor framework to explore the sustainable investment architecture for clients. The SinCo 7P Model provides a synopsis of the current investment architecture and a gap analysis, mapping the effort and timeframe to rolling out an ESG component to investment analysis and portfolio management. No two projects are the same: SinCo begins with fresh ideas to tackle client investment challenges, a world-class advisory boutique offering bespoke services to the leading edge of sustainable investment.
SinCo 4M Framework
SinCo typically begins each engagement by conducting a review of the strategy in place to identify gaps and underlying principles. Depending on the type of project, we will deliver some aspect of the answer based on our mapping of the 4M Framework: management, manufacturing, marketing, and matrix of stakeholders.
From the 4M Framework the critical path to answer/s becomes clear, and the thinking behind the future architecture, the processes and platforms available to execute with, and how the approach plays out in practice. In our Research & Design Projects, we accomplish this remodeling using the proprietary SinCo 7P Model process to integrating environmental, social and governance [ESG] factors into investment architecture for our clients.
The vision and leadership of the organization and its investment philosophy. The management strategy that sees it win or lose in the sustainability meta-trend. How to grow sustainable investment market share by targeting a broader pool of financial assets owned by institutional and retail investors. Management assignments include:
- Sustainability investor selection
- Benchmarking best practice
- Sustainability strategy
- ESG vendor selection
- Project management
- Investment policy
- External review
How is the investment decision process laid out, and how does it work in practice? Despite growing opportunities (in part driven by regulation) to capture economies of scale, asset managers have consistently struggled to control costs - in particular, fund-management costs. We integrate ESG factors to maximize how sustainability impacts the technical management of investment decisions in the most cost-effective and impactful way. Manufacturing assignments include:
- Investment platform development
- Investment security modeling
- ESG investment architecture
- Fundamental ESG analysis
- ESG sector materiality matrices
- Education and training
- ESG research vendor selection
- ESG-integrated process re-design
Investment relies on a strong asset base from asset owners that value the intellectual capital and operational integrity of their investment managers and stakeholders. How will the sustainable investment case connect the investment offering and message to people. SinCo collaborates with clients to develop and articulate meaningful stories for investments that actually have stories to tell. Marketing assignments include:
- Product research and development
- Messaging to market segments
- Market and research analysis
- ESG-theme and sustainable index development
- New product designs
- Client ESG conferences
- Brand strategy
Investment is a multiple hypothesis in a situation of uncertainty. The stakeholder analysis matrix to focus on key stakeholders in the sustainable investment context, evaluate the stakeholder interest, power, engagement, and flexibility. Based on the determination of the Stakeholder Quotient, the stakeholder analysis maps will graphically represents each stakeholder’s position and the narrow the complexity of prioritising engagement activities.How you understand the matrix of complex inter-relationships that your investment decision sits within in this multi-stakeholder world. Matrix assignments include:
- Benchmarking of stakeholder best practices
- Stakeholder mapping
- Stakeholder risks/mitigation/amelioration frameworks
- Low frequency, high-impact stakeholder metrics
- Stakeholder valuation
- Stakeholder maximization strategy
- Stakeholder-led investment design
SinCo 7P MODEL
The SinCo 7P Model provides a synopsis of the current investment architecture and a gap analysis, mapping the effort and timeframe to rolling out an ESG component to investment analysis and portfolio management. Improving sustainable investment decisions must be made on the basis of informed frameworks for the investment lifecycle.
SinCo's experience around the institutional decision-making table - from pension fund trustee, to investment manager, to ESG analysis, to investment index - improves the speed and accuracy of the project-based solutions we may offer to the sustainable investment questions faced by our clients. SinCo helps our investor clients categorize asset flows from institutional and retail investors, to improve their understanding of customer needs, and to devise more efficient business models to capture the available scale economies for sustainable investment strategies.