Smart Pension, the provider behind the eponymous master trust, has invested £550m (€634m) in a new low carbon global equity index strategy that is said to be one of the first pooled funds to offer split voting to institutional investors.
The fund is a partnership between a Carne platform, AMX, asset manager DWS, stewardship provider Minerva Analytics and index provider Solactive. It inaugurates the pooled fund stewardship service announced by AMX and DWS last year.
IPE understand that since announcing this innovative new service, the firms have worked together to find a seed investor, complete the contractual set up of the fund, and set an appropriate launch date.
Using new split voting technology from Minerva, voting is split in proportion to each investor’s holding in the fund. offering institutional investors stronger investment stewardship and active ownership.
The fund is aligned with Smart Pension’s Smart Sustainable Growth Fund target to be net zero by 2040. The emissions associated with this growth fund have already been more than halved, two years ahead of a 50% reduction target announced in June last year.
“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,” said Paul Bucksey, chief investment officer at Smart Pension.
“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.”
Earlier this week Camden Pension Scheme revealed it was using a ”pass-through” voting solution offered by Legal & General Investment Management (LGIM) and using technology from shareholder voting fintech company Tumelo.