Plum adds ethical funds to its portfolio from BlackRock and Vanguard

After reporting a boom in its ‘Clean & Green’ fund during lockdown, money management app Plum is doubling down with two new ESG (Ethical, Social and Governance) offerings.

‘Balanced Ethical’ and ‘Growth Ethical’ are ESG funds from BlackRock and Vanguard respectively, both of which are new funds that started in 2020.

As its name suggests, Balanced Ethical is a mix of equities, fixed income and cash, 80 per cent of which are considered ethical, while Growth Ethical is a global equity-only fund.

“The idea that investments can deliver good returns while benefiting the environment, society and the economy has been around for more than a decade,” said Plum’s CEO and co-founder Victor Trokoudes.

“What’s really exciting for us here at Plum is we’re seeing a new generation of investors that consider ESG an essential part of their investment strategy.”

Plum’s existing ‘Clean & Green’ fund saw a rise in new investors choosing to invest in the portfolio from 5.5 per cent to 8.9 per cent in Q4 2020 versus Q1.

ESG isn’t the only initiative from Plum, as the fintech is preparing to launch its first pension product, the Plum SIPP, along with single stocks and crypto assets by the end of 2021.

By the end of the year, Trokoudes says he expects to have over 250,000 investors using Plum.