A Cambridge-led coalition of UK Higher Education Institutions (HEIs) has selected us to create a cash fund that excludes companies contributing to fossil fuel expansion globally. The nearly £500 million fund will make it possible for the 79 UK colleges, universities and other institutions involved in the coalition – formed by the Banking Engagement Forum based at the University of Cambridge – to make short-term cash-like investments without contributing to fossil fuel expansion within capital debt markets.
The new “quasi-money market fund” is part of a broader movement towards climate-conscious investing, appealing to a diverse range of investors including universities, local authorities, pension funds, insurers, and others with substantial cash to invest and committed to doing so responsibly.
The fund will filter out fossil fuel companies, utilities, banks, insurers, and other companies that contribute to fossil fuel expansion. Companies that are excluded from the list can be readmitted if they stop engaging in or facilitating fossil fuel expansion.
The Higher Education Institutions coalition has indicated they collectively expect to invest in the first instance close to £500 million in the product. The fund is expected to launch towards the end of 2025, with more seed investors also expected to join prior to launch.
At Amundi, we are committed to the view that delivering strong stewardship as well as expert responsible investment solutions will facilitate the transition to an inclusive, low carbon economy while delivering stable, long term sustainable value for clients. This product, developed for the UK’s leading universities and higher education institutions, reflects a growing recognition among UK investors of the importance of these efforts in supporting long-term social, environmental and economic benefits.”
