Wiltshire Pension Fund has invested in Lombard Odier’s Planetary Transition strategy as part of an allocation from its £75m Climate Opportunities (Clops) portfolio.
The £3.1bn UK Local Government Pension Scheme (LGPS) fund has announced that the Planetary Transition strategy will manage the listed equities allocation of the Clops portfolio, representing 20% of the portfolio’s assets.
Lombard Odier’s global equity strategy invests in companies that are delivering change as part of the global transition, ranging from future electrification to investments in new forms of food production to the circular economy. The Article 8 compliant SICAV fund returned 5.8% year to date and comes with a management fee of 0.75% as well as ongoing charges of 1.91%.
“The key goal for this [Clops] portfolio is to make sure that we don't miss out on the opportunities presented by the transition, with a dual aim of competitive financial returns and positive environmental impact.
“This mandate will help us drive the transition by directly investing in solutions, thereby reducing the risk that as a world we end up in an unmanageable warming scenario, which would itself be financial damaging for the fund, as indicated by the climate scenario modelling,” the pension fund said in a statement.
Currently, Wiltshire has a goal to have 30% of the fund invested in sustainable assets by 2025 and a target to achieve net zero across all investment portfolios by 2050.
Alongside investing in Lombard Odier’s strategy, the fund has committed to other climate solutions, including Toucan Energy’s UK solar energy portfolio through Schroders Greencoat.
