London CIV and Morgan Stanley Investment Management (MSIM) today announced the launch of the LCIV Global Equity Core Fund (the Fund).
The Fund will complement the existing range of global equity offerings available through London CIV and is now open for investment. Following a diligent selection process, MSIM’s International Equity team has been appointed as the Fund’s delegated investment manager.
The Fund’s objective is to generate total return, comprising both capital growth and income, over a long-term period (typically five – 10 years). The Fund is a concentrated portfolio of high-quality companies that is carbon light, and free of sectors such as tobacco, alcohol and fossil fuels. The portfolio’s carbon footprint is 95% lighter than MSCI World Index, per $1mn invested.
The Fund is structured as a segregated portfolio and integrates material environmental, social and governance (ESG) considerations – both material threats and opportunities to high and sustainable returns on operating capital employed – in its process.
Jason Fletcher, Chief Investment Officer at London CIV said, “London CIV is delighted to be adding MSIM’s quality-driven, ESG-integrated portfolio to the London CIV family of funds. Responsible Investment has become an increasingly important consideration for Asset Owners and at London CIV we are continuing to develop solutions that meet with these high expectations from our 32 client funds”. Fletcher continued, “We see these as a contributor to better risk adjusted returns and for us it is vitally important that those managers that we appoint share the same values. We have made big strides during the last year developing a Responsible Investment team headed by Jacqueline Jackson to build out our position on Responsible Investment and engagement. This has led to a more concerted effort to incorporate London CIV values and beliefs into our manager selection and ongoing monitoring. Our partnership with Morgan Stanley is an endorsement of these values.”
Richard Lockwood, Managing Director and Head of Distribution for Northern Europe, MSIM, commented, “Given our experience with UK local authorities, we are very pleased to have been awarded this significant mandate, and we look forward to working with London CIV and their partners over the coming years.”
William Lock, Managing Director and Head of the International Equity team, MSIM, added, “We are delighted to partner with London CIV and their underlying boroughs. We believe our active global equity investment approach, focused on high quality compounders, is well suited to helping institutional investors meet their long-term obligations. This mandate also illustrates the increasing demand we are seeing for ESG-integrated strategies that demonstrate a low-carbon track record.”
At the end of July, London CIV assets under management had reached £9 billion which, combined with the £10 billion invested in passive strategies, has taken the percentage of London’s assets ‘pooled’ to over 50%. The pooling vehicle will continue to develop and launch products to augment its current fund offering and to introduce alternate asset classes to its platform.
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