On the go: London CIV, which oversees £23bn on behalf of 32 London Local Government Pension Scheme funds, has launched an active equities fund that is aligned to the objectives of the Paris Agreement.
The LCIV Global Alpha Growth Paris Aligned Fund launched on April 13 with £485m seed investment from two client funds. Baillie Gifford was appointed to manage this active equities fund.
The fund serves as a lower-carbon variant of the existing LCIV Global Alpha Growth Fund, which has been part of the pool’s offering since April 2016.
Baillie Gifford will use a quantitative screening process to remove companies with particular levels of revenue exposure to fossil fuels. This includes revenue from exploration, production, and service provision to the sector.
The manager will also apply a qualitative screening to other companies to explore the balance between vital and discretionary emissions, potential emission-reduction pathways, and management’s appetite to adopt a low-carbon transition.
Jason Fletcher, chief investment officer at London CIV, said: “As investors, we play an important role in navigating a pathway to net-zero emissions through alternative investment approaches, and we must hold companies to a higher standard of accountability and transparency.”
He continued: “The introduction of the LCIV Global Alpha Growth Paris Aligned Fund reflects London CIV’s efforts to provide long-term, sustainable investment solutions to our client funds while addressing key socioeconomic issues and contributing towards the long-term goals of the Paris Agreement.”
This article originally appeared on Mandatewire.com
