LGPS Central, Wolverhampton, England, chose FTSE Russell as the benchmark provider for its newly launched £2.1 billion ($2.6 billion) global multifactor passive equity fund with a climate focus — the All World Equity Climate Multi Factor Fund — a spokesman said.
Allocations from two member pension funds — the £15.5 billion West Midlands Pension Fund, Wolverhampton, and the £5.3 billion Cheshire Pension Fund, Ellesmere Port — were made into the fund, which is managed in-house.
The FTSE customized index tilts the fund away from companies with greater carbon emissions and the most carbon-intensive fossil-fuel reserves toward those with green revenues. FTSE has previously provided benchmarks for the pool's passive U.K. equity fund and passive global ex-U.K. equity fund, the spokesman said.
Mike Weston, CEO of the £45 billion pool of local government pension schemes said in a news release that the new fund enables the pool to align "shared sustainable investment ethos with our long-term investment goals."
The pool is made up of nine Midlands-based local government pension funds from Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Worcestershire, West Midlands and the West Midlands Integrated Transport Authority Pension Fund.
