• The People’s Pension (TPP), one of the UK’s largest independent pension funds, has appointed Amundi and Invesco to manage £28 billion ($35.3 billion) in assets, prioritizing responsible investment and sustainability.
• Amundi will oversee £20 billion ($25.2 billion) in developed market equities with a climate-focused index strategy, while Invesco will manage £8 billion ($10 billion) in fixed income investments aligned with net zero targets.
• The shift follows a review of ESG policies and investment stewardship priorities, transitioning away from previous sole manager State Street, which now retains £5 billion ($6.3 billion) of the portfolio.

Major Shift in Asset Management

The People’s Pension (TPP) has announced a strategic shift in its asset management approach, appointing European asset manager Amundi and U.S.-based Invesco to oversee £28 billion of its £32 billion ($40.3 billion) pension fund portfolio. The move underscores TPP’s commitment to responsible investment, sustainability, and climate-focused strategies.

Previously, the entire portfolio was managed by State Street, the third-largest U.S. asset manager, which will now retain £5 billion ($6.3 billion) of TPP’s assets.

Mark Condron, Chair of Trustees for The People’s Pension, emphasized the fund’s commitment to balancing financial performance with sustainability. “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.”

Why Amundi and Invesco?

Following a review of ESG and stewardship priorities, TPP found Amundi and Invesco best aligned with its responsible investment principles. Amundi, Europe’s largest asset manager, will manage £20 billion ($25.2 billion) in passive equity investments with a climate-focused index strategy. The firm will also provide ESG data, metrics, reporting, and analytics through its ALTO platform.

Jean-Jacques Barbéris, Head of Institutional & Corporate Clients Division and ESG Supervisor at Amundi, highlighted the firm’s commitment to responsible investment, stating, “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.”

Meanwhile, Invesco will oversee £8 billion ($10 billion) in fixed income investments, emphasizing net zero alignment and active engagement with issuers to promote sustainable business practices. The firm has been a signatory to the Principles for Responsible Investment (PRI) since 2013 and conducted over 2,200 ESG-related engagements in 2023.

Tony Wong, Senior Managing Director & Co-Head of Investments at Invesco, said, “We are tremendously excited to be a long-term partner for The People’s Pension in generating the best possible outcomes for the Scheme’s members by deploying the asset allocation, research, and portfolio management expertise of our nearly 200 professionals in our global fixed income team.”

A Growing Commitment to ESG

The People’s Pension updated its Responsible Investment policy in April 2024, outlining key stewardship priorities, including climate change, nature, and human rights. The fund seeks to “encourage companies to behave in a more sustainable way” by prioritizing ESG risks and engaging with investee companies rather than relying on exclusions.

Dan Mikulskis, Chief Investment Officer at People’s Partnership, described the move as “a major evolution for The People’s Pension.” He added, “Both managers bring exceptional expertise and share our commitment to responsible investment, which is central to our approach.”

The State Street Factor

State Street’s reduced role follows a shift in the fund’s investment approach. The firm has faced scrutiny over its declining support for ESG initiatives, reporting a drop in support for environmental and social shareholder proposals in 2024. In the first half of 2025, State Street Global Advisors backed only 6% of environmental and 7% of social shareholder proposals, reflecting a broader trend among major asset managers, including BlackRock and Vanguard.

A State Street spokesperson stated, “We look forward to continuing our work with The People’s Pension on the remaining mandates.”

Looking Ahead

This transition marks a major step for The People’s Pension as it seeks to align its investment strategy with sustainability goals. The move also highlights a growing trend among pension funds to diversify their asset managers and prioritize ESG-focused investments. With Amundi and Invesco now at the helm, TPP aims to deliver sustainable, long-term value for its nearly seven million members.