West Midlands Pension Fund leads £1bn global sustainable equity mandate
At a glance:
- West Midlands Pension Fund has launched a sustainable equity framework, available to all schemes in the LGPS Central pool
- The mandate will award five investment managers who show commitment to the code of transparency
- The mandate will be managed using the same strategy as WHEB’s existing sustainability and sustainable impact funds
The £16bn local pension fund has launched a sustainable equity framework, which is available to all schemes in the LGPS Central pool.
The £16bn Local Government Pension Scheme (LGPS) fund has launched a sustainable equity framework, which is now available to all schemes in the LGPS Central pool.
The framework will award five investment managers which complete a set of assessment criteria and show a commitment to the LGPS code of transparency.
WMPF stated total awards of £1bn across all LGPS Central participants are expected in the first year.
After a manager search conducted by Redington, AGF Management, Baillie Gifford, Impax Asset Management, RBC Global Asset Management and WHEB Asset Management have been appointed to a panel of investment managers to help run the mandate.
Partner funds Cheshire, Derbyshire and Worcestershire collaborated with WMPF on the development of the framework and the appointment of investment managers.
LGPS Central director of responsible investment and engagement Michael Marshall commented: "This is the largest allocation to actively-managed sustainable equities ever made in the UK. This shows tremendous leadership by our partner funds, who continue to demonstrate that responsible investment is truly integrated into their investment strategies."
WHEB's portion of the mandate is expected to be managed using the same strategy as its existing FP WHEB Sustainability Fund.
WMPF investment and finance assistant director Jill Davys said: "WHEB's investment strategy integrates sustainability and the opportunities from the transition to a low carbon and more sustainable economy at its core.
"WMPF's objective is to align our investment strategy for long term sustainable returns and we are therefore delighted to appoint WHEB for this global sustainable equity mandate."
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