LGS awards $440 million ESG investment mandate to PIMCO

29 August 2018

Local Government Super (LGS) today announced that it has awarded a new fixed-income ESG mandate to investment manager, PIMCO. Under the mandate, PIMCO will manage approximately AUD$440 million across global credit and government bonds.

LGS Chief Investment Officer, Craig Turnbull, said: “We are pleased to continue our long standing relationship with PIMCO. PIMCO’s investment strategy perfectly complements our commitment to earning long-term sustainable returns for our members while actively managing the environmental, social and governance risks across our investment portfolio.”
In line with LGS’ responsible investment philosophy, PIMCO fully integrates environmental, social, and governance considerations in its investment practices; restricts investments in issuers who do not engage in acceptable practices; invests exclusively in highly-rated ESG stocks; and actively engages with issuers to improve ESG-related business practices.
Adrian Stewart, Head of PIMCO Australia, said: “We are excited to bring what we believe is an engagement-driven, industry-leading ESG fixed income solution to the Australian marketplace with Local Government Super; a long-time client and investor.” 
“Responsible investing has evolved and investors have set their sights higher. It’s no longer enough just to screen out undesirable categories; investors want to foster positive social change. Our ESG platform provides the tools to do that without compromising on returns.”   Mr Turnbull, said: “This is the first time LGS has awarded an ESG specific mandate for a global credit and government bond mandate in fixed income and while we are not the first to make such an investment, it is a relatively new concept for both the Australian and global market.”
“LGS recognises that the long-term prosperity of the economy and the wellbeing of members depends on a healthy environment, social cohesion and good governance of LGS and the companies in which it invests.”
LGS has been widely recognised for its commitment to responsible investment:

  • Number one ranking globally for the management of climate change in the 2017 global Asset Owners Disclosure Project
  • Named Australia’s Best Green Super Fund for the sixth time at the 2018 Money magazine ‘Best of the Best’ awards 
  • 5-Star Green Star rating for the performance of the LGS direct property portfolio.

Read more information on LGS’ responsible investment approach.

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