Cushon partners with Wellington Management and Lombard Odier in green impact investment strategy

By Joy Dumasia

Cushon Master Trust, the world’s first net-zero pension, is partnering with fund managers Wellington Management and Lombard Odier Investment Managers as part of its new investment strategy launching in early 2022. 

Wellington Management and Lombard Odier Investment Managers will manage listed bonds focusing on the most promising companies accelerating towards net-zero to support that transition to deliver safer long-term returns. Wellington will manage impact bonds with both a climate and social focus, whilst Lombard Odier Investment Managers will manage bonds focussed on positive climate impact and funding companies working towards a green society. 

Examples of projects that the fund managers will invest in include companies working towards creating a greener society, such as those pursuing innovations in alternative energy, and funding academic institutions developing tools and research to support social inequality reduction goals, such as Howard University. 

As Cushon’s research shows that 62% of employees would engage more if they knew their pension was having a positive impact on climate change, both partnerships are integral to Cushon’s new investment strategy goals to improve member engagement levels further, and ultimately outcomes, by sustainably navigating investment risk as to the world transitions to a net-zero economy. 

Roger Mattingly, Chair of the Cushon Master Trust, said: “The expertise of two of the largest global players will be integral to delivering excellent retirement outcomes for our members whilst demonstrating our commitment to sustainable investing. We’re looking forward to working closely with both Wellington and Lombard Odier to continue leading the pensions industry in reducing emissions to benefit both people and the planet – and improving members’ long-term risk-adjusted returns.” 

James Bradbury, Head of UK Defined Contribution at Wellington Management, said: “Wellington Management is delighted to be partnering with Cushon to drive innovation in the UK Defined Contribution market. We believe our strength in impact and sustainable investing across asset classes makes us uniquely positioned to put Cushon’s members’ capital to work to address some of the world’s biggest social and environmental problems whilst focusing on strong investment returns.” 

Nathalia Barazal, Co-Head of Lombard Odier Investment Managers (LOIM), added: “At LOIM, we recognise the importance of fostering sustainable investment outcomes for clients, and in Cushon, we have found a partner that shares this philosophy. The environmental transition is the industry’s most pressing challenge but also presents a significant investment opportunity. We are delighted to be working with Cushon to provide scalable opportunities to position capital into an environmentally-friendly economy and help investors looking to benefit from the sustainability transition.”