On the go: The £1.1bn Cushon Master Trust has appointed Wellington Management and Lombard Odier Investment Managers to handle the bond element of its new investment strategy, which focuses on sustainable investments and is launching in early 2022.
The scheme has formulated a new investment strategy, which aims to focus on greener companies that are generally expected to perform better in the longer term.
Lombard Odier and Wellington will handle a 10 per cent corporate bonds portfolio, which targets the most promising companies that are accelerating towards net zero with the aim of supporting that transition and to deliver safer long-term returns, Cushon stated.
Wellington will manage impact bonds with both a climate and social focus. Lombard Odier will handle bonds focused on positive climate impact and funding companies working towards a green society.
“Both partnerships are integral to Cushon’s new investment strategy goals to further improve member engagement levels, and ultimately outcomes, by sustainably navigating investment risk as the world transitions to a net zero economy,” the master trust stated.
Projects that will be invested in include companies working towards creating a greener society and funding academic institutions that are developing tools and research to support social inequality reduction goals, such as Howard University.
Roger Mattingly, chair of the Cushon Master Trust, said: “We’re looking forward to working closely with both Wellington and Lombard Odier to continue leading the pensions industry in reducing emissions to benefit both people and the planet and improving members’ long-term, risk-adjusted returns.”
The new strategy also includes a 15 per cent allocation to private markets managed by Schroders Capital, and will focus on projects including sustainable infrastructure, clean tech, natural capital and climate insurance, as well as social and affordable housing.
This article originally appeared on MandateWire.com
