In response to rapidly growing demand, particularly from young people, Moneybox has launched a Socially Responsible fund to allow customers to invest more in line with their values.
The new fund, run by Old Mutual Investment Group, is exclusively available to Moneybox customers in the UK.
The fund tracks the MSCI World ESG Leaders Index and invests in a range of global companies, considering environmental, social and governance factors in its selection process.
These factors include how companies respond to climate change, treat their workers and manage their supply chains. By enabling customers to invest in companies with the highest ESG performance compared to their sector peers, the fund empowers customers to make a positive impact with their capital and influence ESG practices around the world.
Young people have been increasingly calling for socially responsible options. Research from Old Mutual Investment Group found that 92% of millennials believe that a company’s competitive edge and profitability will be enhanced by doing good.
“Young people are changing the way we invest. Most of our customers are under 40 years old and they’ve been telling us they want a socially responsible investment option for some time. We’re delighted to be working with the team at Old Mutual Investment Group to offer them a way to invest in a way that’s more aligned with their values.” said Ben Stanway, co-founder of Moneybox.
“Socially responsible practices are increasingly aligning with profitability for some of the world’s largest companies. Young people in particular want to be able to have more of a say in where their money goes, what their savings invest in, and the type of future this builds for them. We are pleased to be working with Moneybox to offer their customers a socially responsible investment option, and proud that this fund will be one of the most cost-effective ESG offerings amongst mainstream UK providers.” said Jon Duncan, Head of Responsible Investment at Old Mutual Investment Group
The Socially Responsible fund will be available across all the investment options offered by Moneybox. When signing up, customers will be given the option to invest in the standard global shares fund or the Socially Responsible (SR) global shares fund. Ongoing fees for this fund will be slightly higher than for the standard global shares fund - 0.18% compared to 0.12% per year. The fund will also be available as part of the company’s upcoming pensions service.