More than ever before, consumers want to invest in “socially responsible,” “sustainable” or ESG funds. But how sustainable are these funds, really? How can advisors steer their clients towards the most suitable products? And how can financial advisors and consumers alike navigate the maze of “sustainable” products on the market?
2° Investing Initiative is launching a series of online platforms across Europe to empower retail investors and advisors with the independent resources they need to answer these kinds of questions. The first one, MeinFairMögen.de (“MyFairMoney”), was launched in Germany on October 15th. The next is set to be launched in France in 2021 as part of the Finance ClimAct project, with plans to replicate the platform in additional European countries in the coming years.
With the launch of these platforms, 2° Investing Initiative and its partners aim to cut through the noise and provide consumers and advisors with independent, trustworthy information on the world of ESG investing. In the long run, not only will this help empower sustainably minded consumers, but it will also help divert more resources into funds that could contribute to climate change mitigation.
More about MyFairMoney:
MyFairMoney offers three key benefits:
- Retail investors can use the resources on the website to find out more about sustainable investing
- Investors can fill out a questionnaire to determine their personal sustainability profile, which they can use to inform consultations with their bank and/or financial advisor
- Users can browse an extensive database of around 8,000 funds, which provides detailed information on the sustainability of various investment products. Retail investors can search for individual funds and check or filter them in terms of sustainability, for example, by climate friendliness or exclusion of arms production.
Notably, MyFairMoney takes into account the new EU regulatory requirements on investment advice for non-financial preferences (MiFID II). Thanks to the platform’s questionnaire, financial advisors can now easily ask their clients about their long-term investment preferences and factor the results into their advice. This is a first step towards helping advisors to identify – and better respond to – their clients’ non-financial preferences.
As part of the Finance ClimAct project, 2° Investing Initiative, with the support of the French Ecological Transition Agency (ADEME), plans to build on My Fair Money to develop a similarly free, independent platform for retail investors and advisors in the French market. Like My Fair Money, the platform will include an online suitability questionnaire and a ranking of investment products, including all eco-labelled products. After users fill out the questionnaire to determine their investment profile, the tool will calculate the right allocation and recommend a selection of suitable products based on automated matching with multiple product databases.
Visit the platform (in German)
This project is funded by the National Climate Initiative (NKI) of the German Federal Environment Ministry (BMU).