Now Pensions improves sustainability metrics with new investment strategy
Now Pensions’ new investment strategy has enabled it to accelerate climate action on its default fund.
This new strategy was implemented in the first quarter of this year, and moves away from the derivates-based risk parity approach to direct holdings in equities, bonds and other assets.
Now Pensions says this has been done to improve investment performance while also enabling it to enhance its approach to sustainable investment. The master trust has previously lagged towards the bottom on the performance details in Corporate Adviser’s CAPA league tables. It says this switch to direct equity holdings will enable it to make more of a real-world impact on climate, while progressing towards its own 2050 net zero goal.
