LGPS Central Limited – which manages the pooled assets of nine UK-based public sector pension funds – has launched a multi-factor equity fund with climate at the core of its investment process.
The strategy incorporates three climate change considerations: carbon emissions, fossil fuel reserves and green revenues.
The All World Equity Climate Multi Factor Fund is designed to consider the risks and opportunities associated with climate change, aiming to achieve “superior” returns over the long-term.
Initial investment in the fund will come from local authority pension funds the West Midlands Pension Fund and the Cheshire Pension Fund.
The LGPS Central Pool is made up of nine Midlands-based local government pension funds: Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Worcestershire, West Midlands and the West Midlands Integrated Transport Authority Pension Funds. The nine funds have approximately £45bn of investment assets collectively.
The local government pension scheme recently selected tech firm Byhiras to develop a system to compare themes and expenses of investment managers that manage money for the sector.
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