Pension Funds

LGPS Central selects 5 managers to run $1.3 billion in global active sustainable equity

The pension funds of LGPS Central, Wolverhampton, England, selected five managers to run a 1 billion ($1.3 billion) allocation to global active sustainable equity, West Midlands Pension Fund, Wolverhampton, said in a news release on its website.

The five managers appointed were AGF Management, Baillie Gifford, Impax Asset Management, RBC Global Asset Management and WHEB Asset Management.

West Midlands Pension Fund is one of the nine pension funds in the 44 billion pool of local authority pension funds. It collaborated with the 5.3 billion Cheshire Pension Fund, Ellesmere Port; the 4.6 billion Derbyshire Pension Fund, Matlock; and the 2.7 billion Worcestershire County Pension Fund, Worcester, to select the managers for the sustainable equity framework.

The managers will target investments in companies with good corporate governance that can benefit from transition to a lower carbon economy.

"This is the largest allocation to actively managed sustainable equities ever made in the U.K.," Michael Marshall, director of responsible investment and engagement at LGPS Central, said in a news release.

The 15.5 billion West Midlands Pension Fund has 40% of its assets invested in equity. Cheshire Pension Fund had 26% in equity, while Worcestershire County Pension Fund and Derbyshire Pension Fund had 75% and 62%, respectively.