HUB24 expands ESG ratings functionality

The platform provider said the new ESG ratings functionality would provide advisers with “data-driven insights and reporting metrics for selected managed funds and more than 350 Australian listed securities”.

The capability is aimed at helping advisers make investment choices that take their clients’ individual preferences and ESG risk profiles into account, which is an increasingly important factor for investors.

HUB24 managing director and chief executive Andrew Alcock said: “There is growing demand by consumers for transparency around responsible investments and our role is to provide solutions which enable advisers to support their clients to meet their individual investment preferences.

“We’re in a unique position to empower better financial futures for Australians so offering a broad range of investment options and insights on the HUB24 platform enables advisers to support their clients in making informed investment decisions.”

Advisers can now access ESG ratings from Morningstar’s Sustainalytics rating system, which identifies whether a managed fund is Responsible Investment Association Australasia (RIAA) certified and ranks selected funds and Australian listed securities.

“Through our collaboration with Morningstar and RIAA, we’re able to offer solutions that give advisers visibility over how well ESG risk is managed or considered, so they can engage with their clients to find investments that align with their values,” Mr Alcock said.

Morningstar managing director Jamie Wickham said: “With more investors increasingly integrating sustainability considerations into their investment decisions, we’re delighted to make available the Morningstar Sustainalytics data on the HUB24 platform. Each of our methodologies gives advisers better visibility over how Australian listed companies and funds manage ESG.”

RIAA CEO Simon O’Connor added that advisers need to be knowledgeable about responsible investment options, citing RIAA consumer research that found 64 per cent of Australian consumers expect this from their adviser.

“By making RIAA certification available on the HUB24 platform, advisers can build their knowledge and understanding, easily determining whether a fund has been certified by us and adheres to the strict operational and disclosure practices required to meet our responsible investment standard,” Mr O’Connor said.

Last week, HUB24 announced that the total number of advisers using its platform increased to 3,692 during the December quarter, an 8.5 per cent increase on the previous corresponding period.