HUB24 Unveils ESG Whitepaper for Advisor-Client Talks
HUB24 has introduced a new whitepaper called "Investing for the future, with clients of the future," featuring ESG trends and insights from prominent industry experts and advisory firms.
This release comes after HUB24's recent webinar, "Investing for the future, with clients of the future," and the rollout of ESG ratings capability on its platform.
HUB24's ESG support tools have been recognised by the Investment Trends 2022 Platform Competitive Analysis and Benchmarking Report, which awarded the company the top position for Best Overall Platform, Best Reporting, and Best in Online Business Management.
With 64% of Australians anticipating their financial advisor to be knowledgeable about responsible investment alternatives, discussing a client's specific preferences and ESG risk profile could help advisers establish new offerings, enhance investment results, and foster stronger client connections.
Morningstar ESG Analyst Erica Hall stated that clients who select responsible investments generally have a longer-term outlook than other investors. Investors who invest in line with their values are more patient, as they have a clear understanding of why they are investing beyond just performance. As a result, these investors are more likely to remain invested and stick with their adviser even during times of market volatility.
Through a partnership with Morningstar and RIAA, advisors who use the HUB24 platform can access data-driven insights and reporting metrics for selected managed funds and over 350 Australian listed securities. This new offering provides transparency on how effectively ESG risk is managed or considered, enabling advisors to communicate with their clients to find investments that match their values.
As the demand for responsible investment grows, advisors are seeking ways to integrate ESG discussions into their practice to meet various client needs.
In an interview with HUB24, Fiona Thomas, Ethinvest General Manager and Financial Advisor, noted that conversations regarding clients' preferences and ESG risk profiles have significantly evolved over the years.
Previously, clients would choose investment areas they wanted to avoid or promote in their portfolios, using a tick-box approach. Nowadays, advisors understand the value of asking open-ended questions to uncover this information, so they are not guiding clients towards or away from specific areas but instead listening to what is essential to each client.
Matching the investments you recommend to your client's values offers another benefit for advisors: clients become more concerned about what their money is doing in the world rather than how it performed over the quarter or year, providing them with a long-term perspective.
Nathaniel Chell, Director and Financial Advisor of Sky Summit Financial, believes that sustainable investments are an ideal match for clients who have 20 or more years to invest. According to him, clients are seeking companies that will remain operational for the next 20 years. As a result, they do not want to invest in companies that may face a significant amount of regulatory risk, stranded assets, or have unacceptable environmental or social standards.
Rather than investing in such companies, Nathaniel and his colleagues prefer innovative firms that have the necessary social and environmental permission to operate in the future. He advises advisors who have yet to enter the ESG investment space to start small by addressing issues they themselves care about and gradually build from there.
For instance, if the client wants a low CO2 emission portfolio, you can start there. There are numerous managed funds and ETFs available to research, allowing you to make sure that you are comfortable with how the money is managed and how the screens, filters, and thresholds are used.
HUB24's ESG whitepaper, 'Investing for the future, with clients of the future,' is available for download, and the HUB24 ESG webinar, 'Investing for the future, with clients of the future,' is available for viewing.
To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.