Pension reform minister Mike O’Brien says although Pada is still to decide on design for the investment set-up for personal accounts, it will actively be considering an ethical option.
Speaking at an event to mark National Ethical Investment Week, O’Brien said: “I do not predict what the investment strategy for personal accounts will be but I can announce that the Personal Accounts Delivery Authority will be consulting on responsible investment in the autumn.”
O’Brien said it was important to recognise that people have different attitudes to investment and research shows that many people look to factors other than investment return.
“A quarter of those who could be enrolled into personal accounts said they would be interested in ethical investment, regardless of returns.”
Standard Life senior technical manager John Lawson says he is not surprised the Pada will be looking to include a number of options. “There will be an awful lot of people who will not invest in personal accounts if there is not an ethical option. Personal accounts covers such a broad church of people it will have to have a number of funds to cover people’s ethical or religious beliefs.”