BigTXN Processes First 1,000 UNGC Screened Portfolios
Launched in November 2022, BigTXN’s United Nations Global Compact (UNGC) Screening service has processed its first 1,000 portfolios since inception.
The automated screening service identifies financial instruments connected to issuers considered to be in violation of the UNGC principles; a report is generated to flag the count of issuers found to be at risk of being UNGC violators. BigTXN’s underlying UNGC violations list which is integrated in the service is continually monitored and updated daily.
The chart above shows the volume of portfolios processed by the service since it was launched (based on weekly volume statistics).
The service saw a marked increase between 30/1/2023 and 20/2/2023 (two red markers on chart), we believe this is directly related to the release of Hindenburg Research’s report on Adani, as the volume of inbound portfolios originating from investors in India, Indonesia, Malaysia and Singapore increased significantly.
The lowest volume of 12 portfolios was recorded in the first week of 30 October 2022, the highest volume was processed in the week of 13 March 2023 at 147 portfolios.
1,063 unique portfolios have been processed; some investors have submitted weekly requests for screening (counted as unique requests) however these cases are limited.
17 exception cases were encountered and these have not been included in the total count.
The chart above shows the volume of ISINs processed by the service since it was launched (based on weekly volume statistics).
ISIN count is based on unique (deduplicated) ISINs processed weekly; during the week of 20 February 2023 we saw a spike in the volume of ISINs, which is due to the submission of a large custodian’s universe of instruments (99,391 ISINs), this was a one-off event and as can be observed in the ex-post pattern, the growth trend of ISIN volume is fairly stable.
The lowest volume of 1,067 ISINs was recorded in the first week of 30 October 2022, the highest volume was processed in the week 20 February 2023 at 123,447 ISINs.
Over 1 million non-unique ISINs have been processed by the service since its inception.
The chart above shows the percentage of portfolio volumes (top 10) submitted for screening based on investor domicile.
We were blindsided by Hindenburg Research’s report on Adani, which triggered a wake up call for Indian investors to seek answers on Indian listed entities and their respective UNGC violation status, if any.
Out of a total of 1,063 submitted portfolios, the top 10 accounted for 740 submissions and the highest ranked contributors were institutional asset managers followed by ETF issuers.
A single firm can submit multiple portfolios and these are counted as unique portfolios.
BigTXN’s UNGC Screening service is an open and free-to-air service available to qualified investors who would like to ensure their investments are not contravening UNGC principles.
The service fully maps and aligns to ISO 26000 as outlined by the UN Global Compact Principles.
For further details and to use the service which is available 24x7, follow this link.
