POWERED BY MOMENTUM MEDIA
LGS invests $90m into ESG fund
Local Government Super has awarded a $90 million mandate to Hermes Fund Managers to launch its Environmental, Social and Governance (ESG) strategy.
The fund invests into global equities and incorporates ESG factors including LGS Super's exclusion list. LGS does not invest into companies with high ESG risks or those that make profits from the sale of armaments, logging, nuclear energy, gambling and tobacco.
The exclusion list can be tailored for specific super clients, and does not invest into companies that are unwilling to work with shareholders to improve business practices, Hermes said.
LGS said it was a further step in the fund's aims to mitigate ESG exposure across its investments.
"This is another step towards LGS developing and implementing innovative strategies that manage or mitigate our ESG risk exposure across all asset classes, while capitalising on investment opportunities to achieve solid returns for our members.
"We appreciate Hermes' expertise and experience in the area of responsible investment, which will be fully utilised within the investment process of this new strategy," LGS said.
Hermes EOS conducts research into companies which breach internationally recognised ESG standards such as the UN Global Compact Principles.
Geir Lode, head of Hermes quantitative equities, said the strategy was a natural extension of the quantitative equity team's operations, which incorporated the work of Hermes EOS.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
New data has shown a progressive deterioration in risk appetite among instos even prior to Donald Trump’s latest round of tariffs.
UniSuper has reached “peak investment” in US assets and is now preparing to reassess its exposures amid ongoing sharemarket volatility.
Investors have slashed their US equity allocations to the lowest level on record, according to new data from Bank of America.
The message from experts in international trade and economists is that the Australian government should refrain from retaliating with reciprocal tariffs.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
