AllianceBernstein has rolled out a new range of ethical target date funds to the UK defined contribution (DC) market.
The range will be managed using underlying FTSE4Good indices and UK gilts.
The Pensions Trust is the first adopter of the funds. It will offer the range to all its DC employer schemes using the SmarterPensions platform.
The ethical target date funds range will employ the same proprietary Dynamic Asset Allocation (DAA) process as AllianceBernstein’s other target date funds. DAA is designed to smooth the ride for investors, by making short-term adjustments to the asset allocation in order to de-risk the portfolio during times of extreme market conditions.
Tim Banks, head of DC client relations at AllianceBernstein (pictured), said: “This launch is further evidence that flexible target date funds can be used to create bespoke strategies to meet pension providers’ individual objectives and investment beliefs.
“Flexible target date funds adapt to the changing needs of a modern working environment and offer a robust governance framework.
“They provide a simpler and more flexible default strategy and we believe a better way for millions of DC members to save for retirement.”
David Harris, environmental, social and governance director at FTSE Group, added: “There is growing demand for investments that incorporate environmental, social and governance (ESG) considerations.
“This can be to align personal values with investment approaches, but is also because many investors expect companies that perform better on ESG criteria to be better long-term investments.
“These new funds will also allow employers, which themselves operate responsibly, to offer an aligned socially responsible option to their staff as they save for retirement.
“The FTSE4Good indices have been designed to objectively measure the performance of companies that meet globally recognised ESG standards and we are proud to have been selected for this pioneering fund series.”