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ESG pensions made simple: “Impartial, whole of market ESG pension advice for no more than 0.92% per year including advice, platform and fund charges”

We are all becoming more mindful of how our pensions are invested. We want our pensions to be environmentally and socially responsible. But we don’t know where to start. The number of so-called “ESG” (environmental, social, governance) investments is bewildering. To make matters worse, many providers use ESG as an excuse to charge higher prices. Today, Profile Pensions solves this problem by offering impartial, whole of market ESG pension advice costing between 0.86% and 0.92% per year, including platform, fund and advice charges (2).

Climate change affects everyone, and the way we choose to live our lives will affect the lives of future generations. Many aspects of lives are already touched by the push to be more green and sustainable. Until recently our attention has been directed more towards what we buy and how we use our money, with very little consideration to where we keep our money, like how we save and invest. However, this is rapidly changing as the investment industry adapts to meet the demands of their more climate aware and conscious customers. You can now grow your wealth while also doing your part for the environment with your investments.

The amount of money invested in Green funds is growing incredibly fast. In 2020, inflows reached $1.65trn, almost double that of the year before (1).

Can consumers cut through the complexity

In the past ESG investments have been more suited to institutional investors because of their higher cost, active strategies, and generally more concentrated positions. This is no longer the case, and as with many things that grow this fast, regulation has been slow to catch up. The pension world is awash with different terms, definitions, and approaches to green investing, making it too difficult for people who don’t have the knowledge or experience to make the right decisions. Some investment managers are taking advantage of consumer demand by charging higher prices for doing very little to make their portfolios greener.

An impartial and affordable approach to ESG investment advice

With little appetite or confidence to go through all the details for every investment manager, Profile Pensions now solves this challenge for consumers.

With over a 1000 different funds available we have scoured the whole of the market, cutting through the complexity and detail, to bring together the best ESG funds, run by some of the world’s leading fund managers (such as Vanguard, Blackrock, L&G, HSBC), packaged up in a fully advised, completely impartial solution.

It is important to be aware that many of the ESG offerings currently available are single fund solutions and a few have several funds, but with the same investment manager. These are both suboptimal, as the former, a single fund investment solution, lacks appropriate diversification making it, by itself, too risky for many investors. The latter is largely done out of ease, rather than to create the best solution for the customer, as it is highly unlikely that a single investment manager has the best fund for every asset class, but is done to ensure a consistent approach to ESG overall. This is one of the greatest challenges with creating a properly diversified ESG portfolio (every investment manager has their own approach to ESG and when combined can often counteract each other), which we have worked tirelessly to overcome.

As demand for green investments soar so have the amount of funds createdThe ESG market will continue to change and develop quickly. That’s why our impartial ESG pension advice service is ongoing. We continually monitor the rapidly evolving marketplace to make sure we pick the best funds with the lowest costs so our customers have an environmentally and socially responsible pension, and peace of mind.

1. Morningstar’s Global Sustainable Fund Flows: Q4 2020 in Review
2. Fund charges vary between 0.14 and 0.2% (depending on investor type), plus 0.12% platform charge and 0.6% ongoing investment advice charge.

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