LGPS fund appoints Capital Dynamics to manage clean energy mandate

Clwyd Pension Fund, which has around £2.5bn of assets under management, has reappointed manager Capital Dynamics to invest its local renewable energy infrastructure mandate.

This follows the UK Local Government Pension Scheme (LGPS) fund’s £50m commitment to Capital Dynamics’ Clywd Clean Energy Wales fund in the 2022/23 financial year.

Structured as a separately managed account, the renewed partnership will commit to new green energy investments in Wales under the Welsh Government’s National Development Framework.

Capital Dynamics was unable to disclose the size of Clwyd Pension Fund’s new clean energy mandate.

“Re-engaging Capital Dynamics for our clean energy impact strategy in Wales reaffirms our trust in their expertise and underscores our commitment to delivering long-term, sustainable investment returns,” said Philip Latham, head of Clwyd Pension Fund.

Since 2010, $14bn Capital Dynamics has acquired a portfolio of 30 clean energy projects with a combined gross capacity of approximately 500 MW.

Barney Coles, co-head of Capital Dynamics Clean Energy commented: “This clean energy investment mandate aligns closely with the newly elected UK government’s mission to reduce electricity bills, create local skilled jobs in industrial heartlands, and achieve British energy security once and for all.”

Alongside Clwyd’s partnership with Capital Dynamics, the pension provider has invested in renewable infrastructure assets through other funds, including a £17m commitment to Copenhagen Infrastructure’s Energy Transition Fund.