Praemium ESG options a platform industry first
In response to growing investor and adviser demand, Praemium has significantly enhanced its approach to Environmental, Social and Governance (ESG) with new ESG screening and customisation platform functionality and the addition of the Australian Ethical Australian Shares Portfolio to the Praemium SMA.
In a platform industry first, Praemium has partnered with leading ESG research house Sustainalytics, to integrate their ESG research and analysis into the platform allowing advisers to tailor portfolios to their clients’ specific ethics and values through bulk stock exclusion.
Managed accounts have always allowed advisers to place holding exclusions on the platform and many have utilised it for ESG purposes. This single stock blocking approach can be time consuming and require ongoing research and updating of preferences to deal with changes at the stock level.
Advisers using Praemium’ integrated Managed Accounts Platform will be able to automatically screen their clients’ portfolios against nine key screening criteria, including three fossil fuel screens, alcohol, tobacco, gambling, adult entertainment, animal testing and controversial weapons, providing a scalable way to satisfy their clients’ ESG preferences and ensure ongoing monitoring.
Praemium has also added the Australian Ethical Australian Shares Portfolio to the Praemium SMA. This is the first time this portfolio has been accessible via a Separately Managed Account and offers the opportunity to invest in an actively managed, diversified Australian share portfolio of companies selected for their social, environmental and financial credentials. The portfolio is centred around the 23 principles of the Australian Ethical Charter that guides its investments in companies that have a positive impact on the planet, people and animals and avoids companies that engage in harmful products or practices. The new offering adds to the growing list of ethical investment options Praemium offers.
Australian Ethical’s Leah Willis commented “Australian Ethical is already well known for our ethical leadership and we’re excited to make this available to advisers in an SMA together with Praemium.
“With Australian’s increasingly wanting to know where their money is invested, our partnership with Praemium offers a fully transparent portfolio underpinned by more than 30 years of ethical investing experience.”
Praemium’s Head of Investment Managers & Governance Damian Cilmi commented “The growing interest in ethical investing is only likely to increase as investors look for ways to minimise their environmental footprint. This offers a real engagement opportunity for informed and well-prepared advisers to provide advice and support to help investors align their investment goals with their personal ethics. Praemium’s new enhancements provide advisers with a variety of options to meet the ethical considerations of their clients whether that is building bespoke custom portfolios, utilising an SMA with customised screening services or investing in specialised ESG strategies.”
