Cazenove to manage university mandate on ‘low carbon’ basis

The University of Reading has picked Cazenove Capital to run a £120m portfolio

Cazenove Capital, part of the Schroders Group, has been appointed by the University of Reading to manage its £120m multi-asset endowment portfolio.

Kate Rogers, co-head of charities at Cazenove Capital, said the multi-asset portfolio will be managed on a fossil fuel-free, low-carbon basis.

She added: “The new approach has four key characteristics; lowering carbon emissions – the proposed equity portfolio has 80 per cent less carbon emissions than the world index; a reduction in emissions equivalent to planting over 200,000 trees per year; engaging with companies to encourage the transition to a lower carbon future – using the influence of a large global asset manager; and investing in solutions to meet environmental needs, such as renewable energy and infrastructure.”

From an initial application pool of 26 investment managers, the University gave a “significant weighting” to ethical, social and governance issues in the choice of a new manager, undertaking extensive interviews with the shortlisted firms, and with guidance from the student union.

Samantha Foley, chief financial officer at the University of Reading, said: “We are confident that Cazenove Capital, and the wider Schroders Group, align with our own stance on climate change and with the Paris goals.

“We are pleased to see that they have committed to mitigating their carbon emissions from 2020 and to 100 per cent renewable energy use by 2025.”

Cazenove Capital is the largest investment manager for charities and endowments in the UK, working with more than 1,500 organisations including 25 universities and colleges.

Schroders was named as the top asset manager for sustainability in Europe by ShareAction in 2017.