The Atlas Master Trust, one of the UK’s largest master trusts for DC pensions, has allocated £320 million to a sustainable multi-factor equity fund run by Schroders.
The allocation represents all of the core equity allocation in three multi-asset funds run by Atlas, which are part of its default lifestyle strategy for DC members. Schroders said that the allocation demonstrated the increasing demand for sustainable and cost-effective investment solutions in the UK. The multi-factor equity fund takes account of the environmental, social and governance impacts of companies. It excludes certain industries, such as tobacco, weapons and gambling and aims to have less than half the carbon intensity of the MSCI All Country World Index, which it aims to outperform.
Schroder’s head of institutional DC, Tim Horne, commented: “Accessing robust and fully-integrated sustainable investment returns has historically proved difficult for UK DC investors. But the launch of the Schroder SMFE fund last year gave them a clear solution to this investment challenge. This investment by Atlas is further evidence of the fund’s relevance for DC savers.”
Atlas Investment sub-committee independent chair, Paul Trickett, commented: “The Atlas Master Trust has had a strong ESG philosophy underpinning everything it does. I’m delighted that Atlas has become one of the first Master Trusts to more explicitly incorporate ESG into its default lifestyle strategies, via the funds managed by Schroders.”