A coalition led by the University of Cambridge and involving 79 UK higher education institutions has chosen Amundi Investment Solutions to manage a new cash investment fund that excludes companies engaged in fossil fuel expansion.
The fund, valued at nearly £500 million, is designed to allow universities, colleges, and other institutions to make short-term investments without supporting fossil fuel-related activities in capital debt markets. The coalition was formed by the Banking Engagement Forum based in the Department of Land Economy at the University of Cambridge.
“This is the first cash fund we know of that will avoid providing liquidity to financial institutions who continue to finance companies that are building new infrastructure, such as coal- and gas-fired power plants, which will lock in fossil fuel combustion for decades,” said Anthony Odgers, Chief Financial Officer at the University of Cambridge.
The fund is structured as a “quasi-money market fund” and is part of a wider trend towards climate-conscious investing. It aims to attract not only higher education institutions but also local authorities, pension funds, insurers, and other investors seeking responsible investment options.
Companies involved in fossil fuel expansion—including fossil fuel producers, utilities, banks, and insurers—will be excluded from the fund. Firms may be readmitted if they cease activities related to fossil fuel expansion.
The coalition expects an initial investment of close to £500 million, with the fund scheduled to launch by the end of 2025. Additional investors are anticipated to join before the official launch. Members of the coalition include the University of Oxford, London School of Economics, University of Edinburgh, University College London, and 75 other UK institutions.
“This initiative offers a practical and credible path for aligning our financial decisions with our climate commitments and institutional values. This provides a solution to institutions that is wider than the higher education sector and which will hopefully act as a catalyst to concrete change," said Sean Anderson, Group Treasurer at Oxford.
Amundi, the selected asset manager, oversees more than €2.2 trillion in assets. Jean-Jacques Barbéris, Head of Institutional & Corporate Clients Division and ESG at Amundi, said: “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.”