The People’s Pension has appointed Amundi and Invesco to manage £28bn (€34bn) in assets with a focus on responsible investment, leaving its previous manager, State Street, with around £5bn left to manage.
The appointments are expected to come into force from the end of the quarter. Until now State Street has managed all of The People’s Pension’s assets worth £32bn.
The UK master trust said the appointments represent a step forward in achieving greater alignment with The People’s Pension’s stewardship approach and priorities and will allow it to continue to evolve these high standards.
A State Street spokesperson told IPE: “SSGA is focused on providing best-in-class service to our clients and growing our franchise in the UK defined contribution market and the other markets we serve. Our business has been expanding in recent years as we form new partnerships, and we have a strong pipeline of opportunities for 2025. We look forward to continuing our work with The People’s Pension on the remaining mandates.”
Mandate breakdown
Amundi will manage £20bn in passive developed market equities, while Invesco, will take responsibility for more than £8bn in active fixed income investments.
The passive equity portfolio awarded to Amundi consists of five regional sleeves covering major developed markets and will continue to include climate-focused indices aligned with The People’s Pension’s responsible investment policy.
The fixed income mandate awarded to Invesco spans sovereign bonds, investment-grade credit, and high-yield bonds across the UK, US, Europe and emerging markets.
The mandate also incorporates defined maturity buckets, allowing for greater precision in managing risk and liquidity. Invesco’s approach will feature net zero alignments alongside ESG analysis and active engagement with issuers to promote sustainable business practices while delivering robust long-term returns.
Both new managers were selected following an extensive research and due diligence process run by the equity and fixed income teams at People’s Partnership, which provides The People’s Pension.
This move follows the recent transition of £28bn of assets into segregated mandates held by the scheme’s custodian, Northern Trust, providing The People’s Pension with greater control, transparency, and flexibility in its investment approach.
Dan Mikulskis, chief investment officer at People’s Partnership, said: “The appointments of Amundi and Invesco are the culmination of months of work for our team, signalling a major evolution for The People’s Pension as we continue to grow and enhance our investment strategy.”
Mark Condron, chair of trustees for The People’s Pension, added that the move to segregated mandates and the partnership with “world-class” asset managers demonstrates the master trust’s ongoing commitment to being a leading force for positive member outcomes in the pensions industry.
He 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 nearly seven million members.”
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