Online investment manager Six Park has said that going green has paid off as it has partnered with Melbourne-based Summerhill Financial Services after releasing its first range of sustainable portfolios.
The firm said that the launch of sustainable portfolios in late 2020 was a key factor in Summerhill’s decision as advisers were ethically required to consider clients’ attitudes toward responsible investing.
Six Park’s new portfolios use sustainability-oriented exchange traded funds (ETFs) for exposure to Australian and international equities (both hedged and unhedged) and omit exposure to emerging markets, since this asset class was more likely to include companies with practices that were at odds with sustainable philosophies.
“Research shows this is the way the industry is heading – in the ASX 2020 Investor Study we saw that interest in ESG [environmental, social and governance] investing was a priority for the next generation of investors, and these investors are the future clients of Australian financial planners and accountants,” Six Park co-chief executive, Pat Garrett, said.
“We’ve reviewed the sustainable ETFs currently available on the Australian Stock Exchange, and we’ve carefully considered their relative benefits and drawbacks. There’s a growing number of sustainable ETFs but they vary widely in the way they’ve been constructed, so Six Park’s investment advisory committee spent considerable time examining the available options as part of their decision-making process,” Garrett said.
Caroline Bell, founder of Summerhill Financial Service, said that offering a low-cost online investment advice and management was an important part of the future direction of the business, combined with financial strategy advice for people who need or want ongoing personal advice.
“Although most people can buy an ETF themselves, they may still need support with initial portfolio construction and getting the investment mix right, rebalancing and simplifying tax management. And, as sustainable options become more available, a thoughtful approach to choosing the right sustainability-oriented ETFs will be important too. That is where we can help,” she said.
