Mandate reviews often assess financial performance alongside ESG integration, including evidence of decarbonisation and engagement quality. 

This case of a mid-sized manager facing the loss of a mandate over weak ESG delivery shows that trustees apply the same expectations to all managers, demanding clear engagement records and data-backed evidence regardless of scale.

Key Takeaways

• The London Borough of Camden Pension Fund will vote today on whether to withdraw a £105 million global equity mandate from the Harris Oakmark Global Fund, citing underperformance and limited ESG integration

• The proposed replacement, the Wellington Global Quality Value Fund, reflects how ESG factors like climate strategy, engagement quality and decarbonisation plans are being considered alongside financial returns

• While larger mandate reallocations including the £28 billion State Street Global Advisors and £14 billion BlackRock cases drew attention earlier this year, Camden’s review shows that ESG scrutiny extends to mid-sized managers as part of routine performance oversight

What happened?

The London Borough of Camden Pension Fund, which manages about £2.2 billion, will vote today on whether to terminate its allocation to Harris Oakmark, a US-based manager owned by Natixis Investment Managers.

As first reported by Responsible Investor, Camden’s review follows a period of underperformance against the MSCI ACWI benchmark and concerns around ESG engagement and decarbonisation progress.

Consultants Isio and the London CIV strategic asset allocation team each noted the absence of a clear net zero pathway in Harris Oakmark’s investment process.

The proposed replacement, Wellington Management’s Global Quality Value Fund, integrates climate objectives more visibly. It reports a weighted average carbon intensity (WACI) 43 percent below its benchmark, excludes coal and oil sands, and targets 90 percent of financed emissions in material sectors to be either aligned with net zero or under active engagement by 2025.

London CIV said the change would align Camden’s portfolio with its “Fit for the Future” framework which embeds climate risk and stewardship in portfolio management.

“The combination of a proven track record, a sound and credible investment process and high standards on ESG integration into the process make this fund a good replacement,” London CIV said.

Why this matters for investors

An understated but significant aspect of Camden’s review is its scale.

At £105 million, this may not be a global headline-grabbing mandate, yet the standards being applied mirror those imposed on the industry’s largest managers. Investors are evaluating financial and ESG performance together, looking for tangible evidence of engagement activity and credible climate targets such as decarbonisation pathways.

The State Street Global Advisors (£28 billion) and BlackRock (£14 billion) reallocations earlier this year showed how sustainability oversight influences major investment relationships. Camden’s case underscores that this level of scrutiny also applies to mid-sized mandates, where stewardship quality and data transparency are judged against the same expectations.

As asset owners and allocators continue to embed ESG frameworks into investment governance, manager reviews are serving as routine checkpoints for verifying engagement quality, emissions reporting and overall accountability across portfolios.

How to protect mandates with credible data-backed ESG intelligence

Camden’s review underlines the need for managers to show clear, verifiable proof of ESG integration across investment decisions. Reviews are no longer based on performance alone but on how effectively a firm can demonstrate engagement quality, transparency and climate accountability.

To strengthen credibility, managers should:

• Provide transparent evidence of ESG engagement activity and outcomes

• Track and respond to emerging controversies to manage reputational exposure

• Ensure data on governance, climate and conduct is auditable and consistent across portfolios

• Communicate ESG performance clearly to clients and consultants

Managers that combine solid investment results with credible, data-backed ESG evidence are best positioned to retain institutional trust.

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