Smart Pension, London, seeded £550 million ($685 million) in the AMX-DWS Global Low Carbon Stewardship Fund, a partnership among four financial services firms.
The defined contribution master trust supported AMX — an investment exchange platform owned by Carne Group — and money manager DWS Group in the design of the low-carbon global equity index strategy. The fund is a partnership among AMX, DWS, stewardship firm Minerva Analytics and index provider Solactive.
The pooled strategy offers institutional investors split voting, in proportion with each investor's holding in the fund. It is also aligned with Smart Pension's 2040 net-zero goal, a Smart news release said.
The commitment was made by reallocating some of the existing passive global equities in the Smart Sustainable Growth Fund, according to a person familiar with the allocation.
"We're delighted to have worked with AMX, DWS, Solactive and Minerva Analytics, to create a fund that is strongly aligned to not only our net-zero targets, but also our commitments to stewardship and accountability," CIO Paul Bucksey said in the news release. "We wanted to be able to invest in a low-carbon fund that offers institutional investors split voting, so we have even more influence over the simple changes companies can carry out to make a big difference: lowering their carbon emissions, reducing harmful waste and improving their sustainability processes. Now more than ever before, investing in a lower carbon economy is crucial for our future."
Smart Pension has £8 billion in assets.