Cambridge University's endowment invests €80 million in unique Nasdaq futures contracts.
**University of Cambridge Investment Management Pioneers Sustainable Investment with Nasdaq Custom Basket Futures**
The University of Cambridge Investment Management (UCIM) has made a significant stride in sustainable investing by utilising Nasdaq Custom Basket Futures, a unique tool designed for investments aligned with net zero greenhouse gas emissions goals.
In a groundbreaking move, UCIM, the investment arm of the prestigious University of Cambridge, completed a trade with a notional value of €80 million in Nasdaq Custom Basket Futures in June 2025. This trade marks the first time the organisation has employed this innovative product, and as of July 2025, UCIM appears to be the only institution using Nasdaq Custom Basket Futures in this specific sustainable investment context.
The Nasdaq Custom Basket Futures comprise a pool of equities that exclude conventional energy stocks, making it an ideal fit for UCIM's sustainable investment strategy. Sarah Wood, Associate Director of Marketable Assets at UCIM, commented that this trade helps in further reducing exposure to conventional energy within the passive component of the endowment's public equity portfolio.
The Cambridge University Endowment Fund, which oversees £4 billion in assets, has committed to achieving net zero greenhouse gas emissions by 2038. This action, according to Sarah Wood, supports the fund's ambition to reach this goal.
Julian Butterworth, Head of Sales for European Market Services at Nasdaq, praised the Nasdaq Custom Basket Futures offering as an example of delivering innovative tools that allow investors to tailor their exposures while benefiting from the transparency and security of regulated markets.
By excluding conventional energy equities from its Nasdaq Custom Basket Futures trade, UCIM has successfully reduced its exposure to conventional energy from 3.3% to 1.2% by December 2024. This strategic move is a testament to UCIM's commitment to sustainable investing and its efforts to reduce its exposure to conventional energy in line with its net zero greenhouse gas emissions goals.
Through this innovative usage of Nasdaq Custom Basket Futures, the University of Cambridge Investment Management (UCIM) has significantly reduced its exposure to conventional energy from 3.3% to 1.2%, aligning closely with its environmental-science objectives related to climate-change and its commitment to net zero greenhouse gas emissions by 2038. UCIM's investment strategy, now comprising a pool of equities excluding conventional energy stocks via Nasdaq Custom Basket Futures, serves as an outstanding example for sustainable finance and investing, paving the way for more institutions to follow this trend in environmental-science-focused investments.
