AUSTRALIA - The Local Government Super (LGS) has awarded specialist environmental investment firm Impax Asset Management Group an A$50M ($46m) segregated mandate.
LGS, which manages about A$6bn in assets for 100,000 local government employees throughout New South Wales, said the mandate will follow Impax's "specialists" investment strategy, which invests in a global portfolio of small cap environmental technology stocks.
The same strategy is employed by Impax Environmental Markets, a closed-ended investment trust listed on the FTSE 250 which over the last five years has returned 47.71%, compared with 20.10% for the MSCI World index.
LGS chief investment officer Craig Turnbull said: "LGS is considered to be Australia's leading superannuation fund for managing the investment risks posed by climate change. Impax was selected because of the expertise of its investment team, the quality of its stock selection process, and performance track record."
Impax chief executive Ian Simm added: "This is our first mandate with an Australian superannuation scheme and is further evidence that institutional investors are convinced about the prospects for superior returns from allocations to the environmental sector."
This week's edition of Professional Pensions is out now.
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The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.