Ethical Target Date Funds

Ethical Retirement StrategiesSM (ERS) combine the sophistication of our packaged target date funds with the responsible investment pioneered by the FTSE4Good and MSCI SRI indices. ERS offers a packaged range of passive funds which provide a diversified and risk-managed default option while investing in leading benchmarks for corporate responsibility standards.

An Ethical Solution with Target Date Approach Benefits

Ethical Retirement StrategiesSM is for clients who want the benefits of a target date approach to maximise scheme member’s retirement income but also wish to limit investments to a diversified portfolio of ethical investments approved for inclusion in the FTSE4Good and MSCI SRI Indices and UK government bonds. Climate change factors will shortly become a standard part of our investing criteria across our range.

Strategic Allocation to Ethical Equity Investments

Each fund in the range has its own specific glidepath and members are typically invested in the fund with their expected retirement window in its name. That means each member’s investments are managed in a single fund wrapper throughout their accumulation phase – effectively providing a single retirement savings solution for the lifetime of the members career.

The member’s single fund solution is a diversified portfolio of approved company shares which incorporates the dynamic consideration and management of their reducing capacity for risk as they approach their retirement window.

Ethical Investment with De Risking Built In

Glidepath

Simple to Use

With AB Ethical TDFs, we do the heavy lifting within the Funds, freeing up time and resource for clients to focus on where they can add the most value: governance.

The AB Ethical TDF Range is:

  • Kept fully up to date with changes in regulation

  • Proactively managed to grasp new opportunities in the market while being aligned to responsible investment parameters

  • Evolved over time using global investment insights combined with proprietary member survey learnings to maintain alignment with member’s needs

Value for Money

  • Low cost investments: we use primarily passive components via index or systematic approaches whether by funds, ETFs or individual securities

  • Outsourcing investment decisions to experts: reduces governance costs, and makes for a clear allocation of roles and responsibilities between investment managers, scheme managers, and their consultants

  • Simple proposition: our intuitive approach reduces client communication costs, and keeps members’ investments up-to-date as a matter of course

  • Streamlined administration: using the minimum number of fund holdings reduces member transaction costs and scheme administration costs, with only one accounting record per member

  • Comprehensive reporting package: reduces time and resource allocated to regulatory reporting by providing full transparency into performance and costs

AB as at 31 December 2020 unless otherwise stated.

Past performance is no guide to future performance. The value of investments and the income from them can fall as well as rise and you may get back less than originally invested.

Related Resources

Flexible DC Solutions
Managing To Your Objectives
AB Target Date Funds Mission and Purpose
Making Target Date Funds Work For You