Ahead of the COP26 climate change conference next week, Smart Pension has confirmed that 70 per cent of its master trust default fund is now in invested in portfolios that meet strict ESG assessments.
It says the transition to these funds means its master trust is ahead of peers when it comes to responsible investment.
Smart Pension has worked with a number of campaign groups, including Make My Money Matter to become a net zero emissions pension fund ahead of the Paris Agreement goal of 2050.
Earlier this year, Smart Pension opened up the benefits of illiquids for its members, through the new MV dual credit strategy — a first for a private sector master trust in the UK. The solution, as part of a longer term strategy to develop and diversify the default investment strategy, was launched in partnership with Natixis Investment Managers
Smart Pension managing director Paul Bucksey says: “We know that our members are increasingly looking at what their pensions savings are doing as they accumulate. As a top priority for Smart Pension, we will be introducing many more responsible investment initiatives over the coming months. It’s our responsibility to make sure that our members’ money not only gives them a great return in retirement but is working for the planet too in the meantime.”
James Lawrence, head of investment proposition at Smart Pension adds: “This increased allocation to the Future World funds in particular means we are making real strides on our net zero journey, given the temperature reduction aims embedded into the funds. We’ll continue to innovate with our investment solution, to ensure we are reaching our net zero goal in a market leading, yet robust, way.”
As an additional part of its commitment to an industry-leading investment approach, the trustees of the Smart Pension Master Trust trust have committed to invest in impact funds to make a real difference to the communities that its pension savers live in.
