Cushon launches its new market-leading investment strategy

By Joy Dumasia

The Trustees of the Cushon Master Trust, the world’s first net-zero pension, have unveiled their new investment strategy to further improve engagement levels and, ultimately, member outcomes. The new strategy, which launches in early 2022, will reduce investment risk as the world moves towards a greener future.

Cushon’s new strategy aims to increase the potential for greater investment returns by focusing on greener companies that are generally expected to perform better in the longer term. Cushon’s 200,000 members’ pensions will be invested in environmental projects such as planting new sustainable forests and financing new wind and solar farms. To ensure strong returns for members, the Trustees will, for the first time, include private market investments in both developed and emerging markets.

The Trustees will work with Schroders Capital, which has $70 billion of assets under management and is the private markets investment division of Schroders, the global asset management group, to manage investments in new high impact projects, including sustainable infrastructure, cleantech, natural capital, financial inclusion and climate insurance, as well as social and affordable housing.

Lombard Odier Investment Managers will manage listed bonds focusing on the most promising companies accelerating towards net-zero to support that transition. Wellington will manage listed social impact bonds, and listed equities will manage listed equities to a Cushon custom-designed climate and social impact index created by Solactive.

Roger Mattingly, Chair of the Cushon Master Trust, said: “The changes announced to our investment strategy demonstrate our commitment to sustainability and responsible investment, which we believe supports better long-term financial outcomes for our members. We have spent considerable time undertaking due diligence of the investments and fund managers, as well as negotiating costs to ensure that we can include private market investments well within the confines of the charge cap. We are certain the new investment strategy will deliver excellent retirement outcomes for our members.”