LV= adds eight environmental, social and governance funds to personal pensions range

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LV= adds eight environmental, social and governance funds to personal pensions range


LV= is adding eight Environmental Social Governance (ESG) funds to the range of funds available through the LV= Flexible Transitions Account pension plan.

ESG funds take account of environmental, social and governance factors before investing in a wide mix of asset classes.

The funds will be available from 18 November 2019 and have been picked by the LV= Investments team to provide more choice and diversification as people become increasingly mindful about where their money is invested.

Advisers and their clients will be able to choose from a mix of passive and multi-asset funds across different risk ratings. Managed by Liontrust, L&G and M&G, the ESG funds will suit a range of risk profiles from Defensive Managed, Managed and Global Growth funds – which are risk-rated as 3, 6 and 9 respectively by Defaqto.

The list of ESG Funds is below:

ESG FundActive/PassiveRisk Rating (Defaqto)Risk Rating (Dynamic Planner)Total Fund Charges
L&G Future World Multi-Index 4PassiveN/A40.36%
L&G Future World Multi-Index 5PassiveN/A50.36%
Liontrust Sustainable Future Defensive ManagedActive340.87%
Liontrust Sustainable Future Cautious ManagedActive450.91%
Liontrust Sustainable Future ManagedActive660.91%
Liontrust Sustainable Future Absolute GrowthActive770.91%
Liontrust Sustainable Future Global GrowthActive980.91%
M&G Sustainable Multi AssetNew Cell550.55%
The LV= Flexible Transitions plan offers pensions savers 240 funds to choose from.
ESG funds are becoming increasingly popular as savers become more aware of how global sustainability challenges such as climate change can affect investment returns.

As a mutual, our members and advisers expect us to have an ESG focus and support change for environmental and social purposes. We have listened to growing demand from advisers and their clients to offer ESG funds so that ethical investors shouldn’t have to compromise between healthy returns and a clear conscience. In fact there is growing amount of evidence that those companies that take account of environmental and social issues often produce strong long-term returns.

As a modern mutual, LV= pays close attention to sustainability, environment and social issues. We regularly champion ethical initiatives on a corporate level, so enabling more people to invest in ESG funds is the next logical step for us.
Andrew Gilbert, Director of Proposition – Savings and Retirement at LV= said: