The investment arm of financial services giant Morningstar has announced today that it plans to launch what it describes as the first ESG pooled fund for US workplace pension schemes.
The Morningstar ESG Pooled Employer Plan is a joint venture with US retirement plan administrator PAi and is described by Morningstar Investment Management, a subsidiary of Morningstar, as the first Pooled Employer Plan (PEP) “intentionally designed to limit exposure to material environmental, social, and governance (ESG) risks”.
PEPs are investment products that allow employers to band together to participate in a single retirement plan, helping reduce administrative burdens and, importantly, costs.
Morningstar Investment Management will be responsible for the selection of funds and investment strategies used in the new offering. And, according to the press release, its investment team will rely on “both the Morningstar Sustainability Rating and interviews …