PENSPLAN PROFI ETHICAL LIFE CYCLE: YOUR PLAN TODAY FOR TOMORROW
The company has founded or promoted the establishment of the three pension funds in the Trentino South Tyrol Region as part of the ‘pensplan’ supplementary pension development project.
The Profi Fund is an open-ended pension fund promoted and developed in collaboration with the six trade associations that make up the Süditiroler Wirtschaftsring.
In order to give thrust to the fund and to accommodate requests from clients interested in investing in an ethical fund, we decided in the course of 2018 to transform the fund’s sub-funds into ESG – Environment Social Governance – and make social, environmental, and governance responsibility its strong point.
In order to give thrust to the fund and to accommodate requests from clients interested in investing in an ethical fund, we decided in the course of 2018 to transform the fund’s sub-funds into ESG – Environment Social Governance – and make social, environmental, and governance responsibility its strong point..
That is how the new PensPlan Frofi Ethical Life Cycle project was born, a supplementary pension fund with 5 sub-funds with different risk/return profiles to allow a strategic dynamic asset allocation, that varies over time as the retirement age approaches (age based dynamic asset allocation). The management of said fund, with decreasing risk profiles, aims to exploit the long-term growth of the markets in its initial phase, optimize the accumulation phase of the member’s capital, and avoid emotional behavior. The company through a free alert service, according to a life-cycle plan, suggests the most appropriate allocation in the various sectors.
The company has collaborated with Banca Etica Group for the use of the investment sector of Banca Etica Sgr; a company with which PensPlan Invest, nowadays Euregioplus, has worked for over a decade managing an ethical line to the full satisfaction of its members. Etica Sgr has developed a securities selection process aimed at excluding countries and companies involved in litigation and identifying the most virtuous experiences based on the analysis of social, environmental, and governance aspects of the issuers.
The subscription to the fund also requires the payment of a solidarity contribution of 3 Euros to support microfinance projects and crowd-funding initiatives managed by Banca Etica.
In order to actively promote the commercial proposition, two important distribution agreements have been signed, with Banca Etica on a national level, and with Cassa di Risparmio/Sparkasse of Bolzano on a more local level (but with a network covering in particular the north-east area).
In less than a year from the actual start of the project, the number of subscribers has more than tripled, confirming the growing interest of clients in responsible investments based on the respect for the environment and on human rights, with a focus on the real economy, enhancement, businesses, and governments that adopt worthy practices.
The “Special Under 18” initiative has also been very successful: it provides the exemption from paying yearly expenses directly charged to the expenses of the member to cover administrative costs, and it is exempt from the yearly solidarity contribution for the underage. We deem it is important to promote the participation of young people in a supplementary pension fund in order to allow the new generations to have more money available for old age in addition to the ever-decreasing public pension. “Think today for tomorrow”.