Chant West has incorporated responsible investment (RI) classifications into its ratings for super fund investment options, providing investors with detailed RI insights that allow them to make more informed investment decisions.
The RI classifications mirror those of Zenith Investment Partners and comprise traditional, aware, integrated, thematic and impact categories, with each one designating the extent of the fund’s incorporation of responsible investment factors.
Investment Partners head of responsible investments, Dugald Higgins, says: “While it’s vital for managers and super funds to be able to measure and demonstrate the role of RI in their investment strategies, it’s equally important that investors can accurately identify which strategies meet with their needs and align with their investment beliefs.
“The fund classification framework across super investment options helps investors understand the integration of a super fund’s RI themes into their processes and the associated impacts on the final portfolio outcome.
“The classification framework is underpinned by a set of principles which is applied by our analysts and overseen by an internal responsible investment committee. We also use our role working right across the industry with a wide range of stakeholders to inform this framework and ensure it remains robust and relevant,” Mr Higgins says.
These classifications will be rolled out across investment options progressively and have already been attached to 70 per cent of investment options in the Chant West super fund universe.
The Chant West RI classifications launch follows the recent addition of its detailed super fund research reports being made available to Zenith clients via Mosaic, the group’s flagship research and portfolio insights platform.
Chant West senior investment research manager, Mano Mohankumar says: “Zenith Mosaic now incorporates detailed qualitative research and ratings assessment reports on some of the industry’s major super funds including AustralianSuper, Australian Retirement Trust (QSuper and Sunsuper) and BT, with plans for more funds to be added to the suite of reports over time.
“The super fund investment ratings include an overall rating for the product issuer and separate ratings for each of its investment options.
“The overall investment capability rating refers to the issuer’s ability to construct investment options that represent industry best practice, and have a high likelihood of achieving their stated risk/return objectives and delivering strong peer-relative outcomes.
“An overall investment capability rating is awarded – and this ranges from 5 Apples, our highest rating, to 1 Apple, our lowest rating.
“This report also assigns ratings for individual investment options available to super fund members, which may differ from the overall investment capability rating, as they assess the specific characteristics of each portfolio,” Mr Mohankumar says.
Disclaimer: ©Zenith CW Pty Ltd ABN 20 639 121 403 (Chant West), Authorised Representative of Zenith Investment Partners Pty Ltd ABN 27 103 132 672, AFSL 226872 under AFS Representative Number 1280401, 2023. This website is only intended for use by Australian residents and is subject to use in accordance with Chant West’s Terms of Use and should be read with Chant West’s Financial Services Guide. Products, reports, ratings (Information) are based on data which may be sourced from a third party and may not contain all the information required to evaluate the nominated product providers, you are responsible for obtaining further information as required. To the extent that any Information provided is advice, it is General Advice (s766B Corporations Act). Individuals should seek their own independent financial advice and consider the appropriateness of any financial product in light of their own circumstances and needs before making any investment decision. Chant West has not taken into account the objectives, financial situation or needs of any specific person who may access or use the Information provided including target markets of financial products, where applicable. It is not a specific recommendation to purchase, sell or hold any product(s) and is subject to change at any time without prior notice. Individuals should consider the appropriateness of any advice in light of their own objectives, financial situations or needs and should obtain a copy of and consider any relevant PDS or offer document before making any decision. Information is provided in good faith and is believed to be accurate, however, no representation, warranty or undertaking is provided in relation to the accuracy or completeness of the Information. Information provided is subject to copyright and may not be reproduced, modified or distributed without the consent of the copyright owner. Except for any liability which cannot be excluded, Chant West does not accept any liability whether direct or indirect, arising from use of the Information. Past performance is not an indication of future performance. Chant West ratings and research are prepared by Chant West and are not connected in any way to research and ratings prepared by any of our related entities.