ESG move

Cameron Hume wins Aussie pension fund mandate

Chris Torkington: investors more aware of ESG ratings

Cameron Hume, the Edinburgh-based investment firm, has been awarded a £67 million (A$125m) environmental, social and governance (ESG) focused fixed-income mandate by Australian pension fund, First Super.

There is scope for the mandate to increase to £270m (A$500m) as First Super implements its Responsible Investing Policy.

First Super is a multi-industry fund with its origins in the pulp and paper, timber and furnishing trades. The A$3.4bn (£1.8bn) fund has 45,000 members.

CEO of First Super, Bill Watson, said: “ESG has clearly been at the forefront of institutional investors’ minds, and managers in equities, infrastructure and property have been talking about it for some time. 

“Although managers of fixed-income and floating rate debt asset classes have been a bit slower to come to the party I believe you will see more institutional investors looking for managers in this asset class and other asset classes with a good ESG methodology.

“We were keen to work with Cameron Hume because of their commitment to the UN Principles of Responsible Investing (UNPRI) and the reputation the company has gained for introducing ESG into mainstream bond investing.”

Cameron Hume is an independently owned fixed-income specialist founded in 2011 by Guy Cameron and Chris Torkington. Following the initial investment by First Super the firm now has £730m ($US1.02bn) under management. The firm has received an A+ rating from the UNPRI.

The Cameron Hume Global Fixed Income ESG Fund comprises investments in sovereigns, corporates and asset-backed securities, making ESG factors accessible to investors in bonds as well as those who invest in equities.

Mr Torkington, MD of Cameron Hume said: “Institutional investors are becoming increasingly aware of the need to integrate ESG ratings into their investment strategies and Cameron Hume is extremely well placed to help them to do that.

“Using our own proprietary analytics tool, CaTo, and the expertise of our experienced investment team, the Cameron Hume Global Fixed Income ESG Fund makes integrating ESG factors into a fixed-income strategy achievable without sacrificing returns.”

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