The pension fund for the London borough of Lambeth is providing the seed investment for a “sustainable equity exclusion fund” launched by London CIV, the asset pooling vehicle for London local authority pension funds.
Lambeth pension fund is investing £200m (€217m) in the fund, with the initial investment to be managed by RBC Global Asset Management, according to a statement.
The new fund excludes investments in sectors such as fossil fuels, tobacco and weapons, and brings more than £580m in assets managed through London CIV’s sustainable equity strategies.
Councillor Iain Simpson, pension chair of the London Borough of Lambeth, said: “We are delighted that London CIV has launched the LCIV Sustainable Equity Exclusion Fund. It shows that local government pension funds can change the investment landscape by creating the demand for innovative products that facilitate disinvestment and address climate change.
“While Lambeth is the first borough to invest with this fund, we hope that many more will follow.”
Kevin Corrigan, interim CIO at LCIV, said: “Being responsible investors is an imperative for the London CIV and our pool members. This fund demonstrates our commitment to finding the right solutions for our investors in this important area.”
As at the end of December, London CIV had £8.5bn of assets under management.