Profile Pensions aims to woo ESG investors with new product
The new portfolios will include higher-rated ESG stocks and exclude the likes of energy, alcohol, gambling and tobacco companies.
It seems that ESG is the acronym on everyone’s lips at the moment and is making its way into the world of pensions.
Alternative pension provider Profile Pensions has launched an environmentally-friendly option for eco-conscious savers.
The new product will offer its customers impartial ESG pension investment advice without the, often steep, costs attached to the eco-friendly option.
Profile Pensions new portfolios will exclude companies that generate 30 per cent or more of their revenues from coal-related activities, weapon manufacturers, tobacco companies and companies that do not comply with the United Nations Global Compact.
“We have searched the whole of the market filtering through all the investment managers that charge extortionate amounts or sell “green” funds that offer a surprisingly light touch. We have combined funds that truly embrace ESG in their investment process from some of the most reputable investment managers, at a market-leading cost,” Jordan Mayo, CEO of Profile Pensions said.
“Given the complexity of the ESG market, we believe that having impartial advice when choosing ESG funds is paramount, and are very proud to offer this service at a competitive rate when compared to many self-serve non advised providers. As we continue to grow, we will be able to get lower fund charges which we pass on at cost to consumers’”
The new pension pots are available thanks to a helping hand from Vanguard and L&G.
Vanguard’s funds exclude all non-renewable energy companies and firms that are directly linked to gambling, alcohol and adult entertainment, while the L&G funds have been re-focussed to include higher scoring ESG stocks.
The new portfolios will cost between 0.86 and 0.96 per cent, which can be broken down into fund charges of between 0.26 and 0.36 per cent and an ongoing advice charge of 0.6 per cent.
Founded in 2017, Profile Pensions has amassed nearly 25,000 customers and is nearing £1bn in assets under management.