UK pension fund manager The People’s Pension (TPP) announced the appointment of Amundi and Invesco to manage £28 billion (USD$35.5 billion) in assets, with a strong focus on responsible investment, including climate-focused and net zero-aligned equity and fixed income mandates.

The new mandates represent the bulk of TPP’s approximately £32 billion in assets, which had been exclusively managed by State Street. In a statement announcing the new appointments, the pension manager said that the move represented a significant step towards aligning its portfolio with its stewardship approach and priorities.

TPP updated its Responsible Investment policy last year, outlining its stewardship priorities as climate change, nature, and human rights, and setting expectations for asset managers to hold investee companies accountable for adhering to investee company expectations, and to implement net zero voting guidelines.

Mark Condron, Chair of Trustees for The People’s Pension, said:

“These appointments highlight The People’s Pension’s broader mission to balance strong financial performance with responsible investment principles. By selecting Amundi and Invesco, we have chosen to prioritise sustainability, active stewardship, and long-term value creation for our near seven million members.”

Dan Mikulskis, Chief Investment Officer at People’s Partnership added that “both managers bring exceptional expertise and share our commitment to responsible investment, which is central to our approach.”

The appointments include £20 billion to Amundi to manage a developed markets equity index climate focused mandate, and £8 billion to Invesco to manage fixed income investments using an approach that will feature net zero alignment alongside ESG analysis and active engagement with issuers to promote sustainable business practices while delivering robust long-term returns. Amundi will also provide TPP with ESG data, metrics, reporting and data analytics through its Amundi Technology ALTO platform.

Jean-Jacques Barbéris, Head of Institutional & Corporate Clients Division, ESG Supervisor, Amundi, said:

“Clients are increasingly in search of bespoke investment solutions that are able to deliver strong risk-adjusted returns combined with a comprehensive commitment to responsible investment. This partnership with TPP is a testament to the strength of our wide-range of investment solutions and we are thankful to TPP for selecting us as a key partner in helping them achieve their net zero investment ambitions.”