Fixed income investment firm Cameron Hume has been awarded a A$125m environmental, social and governance (ESG) focused fixed-income mandate by an Australian pension fund.
Edinburgh-based Cameron Hume was awarded the mandate by First Super, which has scope to increase the investment to A$500m as the Australian business implements its responsible investing policy.
First Super is a multi-industry fund with its origins in the pulp and paper, timber and furnishing trades. The A$3.4bn fund has 45,000 members.
Cameron Hume is an independently owned fixed-income specialist founded in 2011 by Guy Cameron and Chris Torkington. Following the initial investment by First Super the firm now has US$1.02 billion under management.
The Cameron Hume Global Fixed Income ESG Fund comprises investments in sovereigns, corporates and asset-backed securities, making ESG factors accessible to investors in bonds as well as those who invest in equities.
Bill Watson, chief executive at First Super, said: “ESG has clearly been at the forefront of institutional investors’ minds, and managers in equities, infrastructure and property have been talking about it for some time. Although managers of fixed-income and floating rate debt asset classes have been a bit slower to come to the party, I believe you will see more institutional investors looking for managers in this asset class and other asset classes with a good ESG methodology.
Chris Torkington, managing director at Cameron Hume said: “We are delighted to have been chosen by First Super for its first ESG mandate. Institutional investors are becoming increasingly aware of the need to integrate ESG ratings into their investment strategies and Cameron Hume is extremely well placed to help them to do that.”
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