PensionsNov 8 2013

Tam predicts ethical as the next big thing for pensions

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A discretionary manager has predicted significant growth in demand for socially responsible investing over the next few years.

Lester Petch, chief executive officer at Tam Asset Management, said auto-enrolment is bringing ethical investing into the foreground.

“The whole socially responsible thing is moving rapidly into the pensions area,” he said.

“When you look at auto-enrolment, if you ask one question – do you want this socially responsible investment or one that is not – which one are you going to choose?”

If an employer is asked whether or not they want to offer a socially responsible pension solution to their staff, he added, many employers are likely to feel they should out of corporate responsibility.

Individuals feel a greater sense of social responsibility personally these days, Mr Petch said, with many more people doing charity work than in previous generations.

“This whole thing is gaining momentum just because there are more people thinking about it,” he said.

Tam recently told MM that it plans to offer a socially responsible pension solution, to be trialled at the end of the year.

“What we are seeing with pensions is there is nothing in the socially responsible area that is packaged up,” he said.