Cushon Master Trust has partnered with Wellington Management and Lombard Odier Investment Managers as part of its new impact-led investment strategy, which is launching in early 2022.

The strategy will include a 10 per cent allocation to corporate bonds and a 15 per cent allocation to private markets.

Cushon said the partnership formed a key pillar of its updated green impact investment strategy, which aims to support the transition towards net zero and deliver safer long-term investments.

Wellington Management will manage impact bonds with both a climate and social focus, whilst Lombard Odier Investment Managers will manage bonds focused 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 academic institutions that are developing tools and research to support social inequality reduction goals.

The firm’s research found that 62 per cent of employees would be more engaged with their workplace schemes if they knew their pension was having a positive impact on climate change, and Cushon stated that both partnerships were integral to its new investment strategy goals to further improve member engagement levels.

Cushon Master Trust chair, Roger Mattingly, welcomed the partnership, saying: “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.”

Wellington Management head of UK defined contribution, James Bradbury, said that Wellington was “delighted” to be working with Cushon: “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.”

Lombard Odier Investment Mangers co-head, Nathalia Barazal, added: “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.”

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