Ubiquity Introduces ESG Funds to Small Biz 401(k)s

Ubiquity ESG Funds

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Small business DC plan sponsors now have the opportunity to incorporate socially responsible investments into their retirement plan’s investment portfolios with today’s introduction of environmental, social and governance (ESG) fund options to 401(k) offerings from Ubiquity Retirement + Savings.

San Francisco-based Ubiquity’s turnkey ESG investment lineup includes low-cost mutual funds and exchange-traded funds (ETFs) from Vanguard, and is currently available for participants in the firm’s Custom(k) and Reserve(k) plans.

“Just like personal values, investment strategies are not one-size-fits all,” said Chad Parks, Founder and CEO of Ubiquity. “With our new socially responsible investment portfolio, small business owners can empower employees with the opportunity to save for the future while applying their savings toward the causes they care about most.”

The news comes amid an increasing demand for ESG and socially responsible investments across the globe. Investments in U.S. ESG funds surpassed a record $51 billion in 2020, more than double the total from the previous year and a nearly tenfold increase from 2018, according to Morningstar.

According to survey findings released April 22 by Natixis Investment Managers, approximately three-quarters of professional investors, including 72% of institutional investors and 77% of the gatekeepers who select funds for their firm’s investment advisory platform, are now implementing ESG strategies, up from 61% and 65%, respectively, in 2018.

“Ultimately, it’s about the power of choice,” said Ashvin Prakash, Ubiquity’s director of product development. “ESG investing has just recently become more accessible to Main Street investors. Offering these options in 401ks will give small businesses everywhere a competitive edge and help promote plan participation.”

Small business retirement plan pioneer Ubiquity specializes in transparent, flat-fee retirement plans, and for over 20 years has helped more than 9,000 businesses contribute over $2.5 billion toward retirement savings.

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