FE fundinfo has launched a range of ESG-related features within both FE Analytics and FE CashCalc to help advisers “address growing pains” around incorporating sustainability factors into investment advice.
The investment fund data and technology provider said a previous survey had shown that 72% of advisers now incorporate ESG factors into their investment proposition, with many noting an increase in the amount of client money being invested sustainably over the past year.
To help advisers gain an initial understanding of their clients’ attitude towards sustainability, a Sustainable Investing Questionnaire has been added into FE CashCalc. FE fundinfo said the questionnaire can form part of the onboarding process, with the profile used as the basis of a conversation between the adviser and their client.
In addition, new ratings from Climetrics and ISS have been added into FE Analytics, with funds assigned a rating based on the provider’s own methodology. Third party ESG ratings will be added in due course, the firm said.
Lastly, ESG-related data will be added into FE Analytics via the European ESG Template, which can help financial advisers evaluate and better understand the ESG credentials of a fund. This data will be added to Factsheets and the Fund Filter tool.
Matthias Breier, head of ESG product group at FE fundinfo, said: “We are devoted to democratising data to give our clients a broad view of ESG data in the market to aid their decision making. We aim to provide a wide and varied data set to aid transparency in this fast growing sector.
“In addition, ahead of the SDR being finalised in 2023, we’re working towards being ready to provide the necessary insights for regulatory requirements, based on our learnings from both the European SFDR and recent SDR Consultation Paper by the FCA.”
Matt Wiltshire, consultant at FE fundinfo, added: “The ability to gain an understanding of clients’ sustainability preferences as well as having easy access to information on a fund’s ESG credentials will help financial advisers significantly. With upcoming regulatory changes seemingly placing ESG at the heart of the financial planning process, combined with more and more clients wishing for their objectives and values to be factored into their investments, it’s vital we account for their sustainability preferences in addition to their risk-based views.”
