Three new fully sustainable lifestyle strategies with different fund options have been launched by Smart Pension.
The growth funds, the Smart Sustainable Growth Core Fund, Smart Sustainable Growth Fund (the Smart Pension default fund) and Smart Sustainable Growth Plus Fund, will fully invest in funds that positively contribute to the planet and society, investing in areas such as renewable energy projects, clean water and healthcare, according to the provider.
Retirement savers will be able to choose one of three Smart Pension funds, depending on how sustainable they want to be and how much they want to pay in charges, although the Smart Sustainable Growth Fund is the default fund.
Smart Pension said it believes the new options are aligned to member views, having received feedback from members and employers in a recent survey that showed that they have differing views on how sustainable they want their pension investments to be and how much they are willing to pay to be sustainable.
In particular, the survey found that over three-quarters (77.8 per cent) of respondents believe it is important that pension savings are invested in a way that specifically benefits people and the planet, and almost a third of respondents wanted to exclude companies and products which could cause harm to the environment or people.
Smart Pension chief investment officer, Paul Bucksey, commented: “We have listened to our members and our employers, and we are focused on giving them more choice over where their money is invested.
“They can now align their own values with their investments and make a positive impact on society and the planet, with the intention of not compromising on returns. We want to help our members secure long-term financial growth and a safer, healthier world in which they can retire.
“The pension industry has a golden opportunity to drive faster decarbonisation, by investing in businesses that are serious about cutting their carbon emissions. 100 per cent of our flagship growth funds are now invested in sustainable funds and we expect these investments to play a key role in achieving our 2040 net zero target.”
Smart Pension, investment proposition manager, Fiona Smith, added: “We’re delighted to be launching our three new growth funds and proud to be the first pension provider in the UK to offer a choice of growth funds and lifestyle strategies that are 100 per cent invested in sustainable funds and at different price points.
“These funds include allocations to climate-aware strategies and impact investments, such as renewable energy projects, clean water and healthcare. They continue to put Smart Pension at the forefront of the industry from a sustainability perspective.”
Smart Pension has also announced “considerable” progress in incorporating investments with a strong sustainability focus into its portfolio.