£1.2bn Hammersmith and Fulham Pension Fund awards climate transition mandate
The London Borough of Hammersmith and Fulham Pension Fund has appointed Allspring Global Investments and Insight Investment to manage its new buy and maintain credit mandate.
Allspring Global Investments will oversee 10% of the Local Government Pension Scheme fund’s £1.2bn of assets under management, while Insight Investment, via pooling vehicle London CIV, will manage 5%.
Following a review of Hammersmith and Fulham’s investment strategy, the Pension Fund Committee agreed to make a 15% strategic allocation to fixed income, which was to be implemented with an investment grade buy and maintain credit strategy.
The buy and maintain credit strategy developed by Allspring is accessible to investors though a climate transition global buy and maintain fund, which was launched in October.
According to Allspring, the fixed income fund was launched to support UK institutional investors meet both their financial and climate objectives and since inception in August has accrued $100m in investor commitments.
The Article 8 fund focuses on high quality debt issuance from companies with clear net-zero alignment goals.
Andy Sowerby, Allspring's head of international client group, said: "We are witnessing a significant increase in demand for fixed income across our client base. Typically, investors are also focussed on decarbonisation of their exposures along with increased engagement with investee companies who continue to finance their transition to net zero.
We are therefore delighted that the London Borough of Hammersmith and Fulham Pension Fund has appointed us to handle their new buy and maintain credit allocation".