Fixed-income investment manager Cameron Hume announced today it has been awarded a A$125 million ESG-focused fixed-income mandate by Australian pension fund First Super, with potential for the mandate to increase to $500 million as the pension fund implements its responsible investment policy.

Bill Watson, CEO of 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.

“We were keen to work with Cameron Hume because of their commitment to the UN Principles of Responsible Investing (UNPRI) and the reputation the company has gained for introducing ESG into mainstream bond investing.”

Founded in 2011, Edinburg-based Cameron Hume is an independently-owned firm, specializing in providing fixed-income investment management services to pension funds and insurers. The firm’s Global Fixed Income ESG Fund comprises investments in sovereigns, corporates and asset-backed securities.

Chris Torkington, MD of Cameron Hume, added:

“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. Using our own proprietary analytics tool, CaTo, and the expertise of our experienced investment team, the Cameron Hume Global Fixed Income ESG Fund makes integrating ESG factors into a fixed-income strategy achievable without sacrificing returns.”