First Super, Melbourne, hired Edinburgh-based fixed income boutique Cameron Hume to manage a A$125 million ($93.3 million) ESG-focused fixed income allocation, confirmed Bill Watson, the A$3.4 billion super fund's CEO.
A news release from Cameron Hume said there's "scope for the mandate to increase to A$500 million as First Super implements its responsible investing policy," but Mr. Watson, in an email, said no decisions have been made at this point regarding future commitments.
The fund's most recent annual report for its fiscal year ended June 30, 2020, showed a total of eight fixed income allocations with combined assets under management of A$623.3 million.
An assistant to Mr. Watson, in an email, said the fund's allocation to Cameron Hume marks its first ESG-focused fixed income allocation.
In the Cameron Hume news release, Mr. Watson predicted "you will see more institutional investors looking for managers in this asset class ... with a good ESG methodology."