Digital savings app Moneybox has launched a socially responsible fund in a bid to improve how customers can invest in line with their values.
The fund, which will be exclusive to Moneybox users and run by African managers Old Mutual Investment Group, is set up to track the MSCI World ESG Leaders Index.
Old Mutual Investment Group says its research suggests 92 per cent of millennials believe that a company’s competitive edge and profitability will be enhanced by doing good.
The fund will have higher fees that Moneybox’s standard global shares fund, at 0.18 per cent compared to 0.12 per cent per year. Old Mutual Investment Group head of responsible investment Jon Duncan says this remains “one of the most cost-effective ESG offerings amongst mainstream UK providers.”
The fund will also be available in the upcoming Moneybox pension account once it is launched by the company.
Moneybox co-founder Ben Stanway says: “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.”
Duncan adds: “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.”