It's becoming increasingly important for you to have easy access to a range of ESG-related information, so you can evaluate the ESG credentials of funds and make an investment decision aligned with your clients' objectives and values.
We are therefore delighted to introduce another set of 3rd party ESG Ratings into FE Analytics, this time from Climetrics. These follow the ISS ESG Ratings we added into FE Analytics earlier in the summer, which are part of several ESG Ratings we plan to introduce.
The ratings from Climetrics will provide you with an indication of the ESG performance of a fund, specifically relating to how it supports the transition to a low carbon economy. They are therefore designed to help you find funds that invest in companies better at managing material issues related to climate change, water security and deforestation.
Like the ISS ESG 5-star ratings, each fund will now also receive a 1-5 leaf rating from Climetrics (with 1 leaf being the worst and 5 leaves being the best) and they can be found throughout FE Analytics in the following places:
- Portfolio Medium/Long Scan
- Fund Filter and Alert Manager
- Custom Filter/Custom Portfolio Report
- Investment Planner Portfolio Report
Please note, an ESG rating is provided to a fund which makes available the necessary information required to assign a rating. For more information about how ratings are assigned, please read the Climetrics Fund Rating Methodology document.
Given your clients will likely have differing views, preferences and priorities when it comes to sustainability, the addition of ESG Ratings from Climetrics will help provide an indication as to whether a particular fund is aligned with their objectives and values.
Plus, when combined with additional ESG-related information provided via the European ESG Template (EET), we can really help you make an investment decision which is aligned with a specific criteria. For example, you can use the ‘Fund Filter’ tool to start filtering funds based on its SFDR classification (articles 6, 8 and 9).
To help gain that initial understanding of your clients’ sustainability preferences, we have also introduced a Sustainable Investing Questionnaire (SIQ) into CashCalc. This can be used as part of your onboarding process, and the results can act as the basis of a conversation to really understand their preferences when choosing investments.
As always, if you have any thoughts or ideas for improvement, please don’t hesitate to let us know. And if you would like to find out more, please don't hesitate to get in touch.