ESG Fund Factsheet

For adviser use only

Scottish Widows Pension Portfolio

Classification: ESG Integration
Management style: Passive


Scottish Widows have a range of seven passive multi-asset, risk rated funds that could potentially suit a variety of different investor needs.

Name Launch Date ABI Sector Portfolio OCF Fund Size (m)
Scottish Widows Pension Portfolio 1 06/12/2010 PN Specialist 0.10% £2,475
Scottish Widows Pension Portfolio 2 06/12/2010 PN Specialist 0.10% £24,639.5
Scottish Widows Pension Portfolio 3 31/12/2015 PN Specialist 0.10% £132.2
Scottish Widows Pension Portfolio A 30/03/2015 PN Specialist 0.10% £635.9
Scottish Widows Pension Portfolio B 30/03/2015 PN Specialist 0.10% £910.2
Scottish Widows Pension Portfolio 4 06/12/2010 PN Specialist 0.10% £9.915.3
Scottish Widows Pension Portfolio C 30/03/2015 PN Specialist 0.10% £547

About Scottish Widows

Scottish Widows was set up in 1815 to take care of women and children who lost their fathers, brothers  and husbands in the Napoleonic Wars, taking it’s name after the people it was founded to look after.

Scottish Widow’s product range includes workplace and individual pensions, annuities, life cover, critical illness, income protection as well as savings and investment products.

Assets under management*


Total Assets Under Management in the range:

*As at 31/07/2022

Exclusion Policies

Scottish Widows prefer to have a constructive dialogue with the senior management of companies they invest in where they believe they need to improve their ESG performance. This is under the principle that if they simply exclude companies from their investment portfolios, they lose the opportunity to drive positive change by exerting influence on them.

However they believe there are some companies are involved in activities that have such a negative impact on the planet and society that they risk falling out of favour with investors and consumers and so pose an unacceptable investment risk.

Exclusions for equities cover:

  • companies involved in thermal coal and tar sands
  • manufacturers of controversial weapons
  • violators of international standards on human rights, labour, environment and corruption, known as the UN Global Compact.

The Scottish Widows Corporate Bond Tracker fund, which is one of the underlying holdings, also applies a number of exclusions including controversial, nuclear and civilian weapons, tobacco, fossil fuel reserves and companies violating the UN Global Compact.


The OCF for all funds in the range is 0.1% which is very competitive when compared to alternative passive multi-asset funds.

Key themes

Scottish Widows acknowledge that climate change is one of the biggest issues facing society today. They believe that reducing the carbon footprint of their investments has the ability to deliver long-term positive investment outcomes given the stance of regulators, governments and investors.

In order to align with this key theme Scottish Widows have given themselves a target of aiming to halve the carbon footprint of all their investments by 2030 on the path to ‘net zero’ carbon emissions by 2050 in line with the goals of the Paris Agreement.

A significant portion of the equities assets in  the fund is allocated to the BlackRock ACS Climate Transition World Equity fund. This offers diversified exposure focussing on companies that are well positioned to maximise the opportunities and minimise the potential risks associated with the transition to a low carbon economy.

Investment Performance

Each fund aims to achieve growth of CPI plus different percentage point increments dependent on the level of risk being taken, with the level of outperformance targeted increasing as the risk the fund is taking increases. Over a 5 year period all of the funds have underperformed their inflation linked benchmarks, however the one, two, three and four funds have all outperformed their benchmarks when measured since inception.

Performance as at 30th June 2022, source Scottish Widows.

Past performance is not a reliable indicator of future performance.


The funds are available through the Scottish Widows Retirement Account.

Risk tools

The Scottish Widows Pension Portfolio funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Synaptic
  • Finametrica

Supporting documents

Tenet Opinion

The fund range offers a very low cost, passive multi asset solution that integrates ESG considerations into the investment process.

There are some exclusions included however these are limited for the majority of the portfolio and so it may not be suitable for customers looking to screen for a range of different areas.

The fund has an overall focus on climate change as well as a proactive approach to engaging with companies within the portfolio. ESG considerations are taken into account within the investing process however the primary reason for doing so is in order to achieve better levels of investment return. The fund may be suitable for clients who like to know their investments are conscious of ESG issues, but who are still primarily focused on achieving a good rate of return for the level of risk they are willing to take.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).