On the go: Aviva has launched a defined contribution default fund with environmental, social and governance considerations at its heart, in line with growing demand from workers.
Businesses will be able to use this new lifestyle strategy as their default workplace pension fund, or offer it to employees as an alternative to their existing default.
Based on Aviva’s Stewardship range of funds, the offering excludes companies with a significant involvement in tobacco, pornography and coal mining, as well as supporting businesses that make a positive contribution to a sustainable society.
The strategy focuses on ethical and ESG considerations throughout the growth and consolidation phases up to a member’s selected retirement date, and invests in developed markets globally. Unilever is typical of the companies that satisfy Aviva’s ESG standards.
Matt McGill, head of workplace propositions at Aviva, said: “Responsible investing is no longer a ‘nice to have’. The investment and workplace pensions industry can play a huge role in changing the world we live in for the better, and the launch of this lifestyle strategy, utilising the Stewardship funds, is a big step towards that.”
Charges for this ESG default fund are within the 0.75 per cent charge cap.
Aviva’s focus on ESG follows Nest’s recent decision to divest from tobacco stocks, while LifeSight – Willis Towers Watson’s DC master trust – has also switched and now allocates around half of the equity investments within its default fund into ESG investment strategies.
