The People’s Pension1, the UK’s largest commercial master trust, has announced a major evolution as it continues to grow towards becoming a world class asset owner with the appointment of two prominent fund managers to oversee large parts of its rapidly growing investment portfolio.
Amundi2, Europe’s largest asset manager, will manage £20 billion in passive developed market equities, while Invesco3, will take responsibility for more than £8 billion in fixed income investments for the £32 billion4 defined contribution (DC) scheme5.
Both 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.
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 policy6. During the selection process, Amundi showed strength in all areas of the team’s balanced scorecard, which was applied to all managers and looked for areas of excellence across six key factors: portfolio construction, people and teams, risk management and systems, firmwide considerations, responsible investment and partnership capabilities7.
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 appointment meets The People’s Pension’s requirement for a manager that can serve as a long-term strategic partner, with experience across a range of sub-asset classes as well as being capable of delivering superior returns for members with strong access to markets which is particularly important given the scale at which the Scheme operates.
The mandate also incorporates defined maturity buckets, allowing for greater precision in managing risk and liquidity. Invesco’s approach will feature net zero alignment alongside environmental, social, and governance (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.8
This move follows the recent transition of £28 billion 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.
Commenting on the appointments, 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. As one of the fastest growing asset owners in the UK, we have a responsibility to deliver strong, sustainable returns for our members and a best-in-class investment strategy. Both managers bring exceptional expertise and share our commitment to responsible investment, which is central to our approach.”
Mark Condron, Chair of Trustees for The People’s Pension, said: “Our move to segregated mandates alongside partnering with world-class asset managers demonstrates our ongoing commitment to being a leading force for positive member outcomes in the pensions industry. 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.”
Valérie Baudson, Chief Executive Officer of Amundi, said: “We are proud that The People’s Pension has chosen to partner with us and we will work with them in the best interests of British pensioners. As retirement regimes in the UK and across the globe continue to evolve, this partnership highlights Amundi’s capabilities in the fast-growing DC market.”
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. This a testament to the strength of our global fixed income platform but also delivers the full scope of Invesco capabilities to this strategic partnership.”
ENDS
Notes to editors:
1, The People’s Pension is provided by People’s Partnership and is one of the largest independent master trusts in the UK, serving nearly seven million pension savers and more than 100,000 employers across the UK and manages more than £32bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
2. As Europe’s leading asset manager among the world’s top 10 players[1], Amundi offers its 100m clients – individuals, institutions and corporates – a full range of savings and investment solutions in active and passive management, in traditional and real assets. This offer is enriched with services and technological tools that cover the entire savings value chain. A subsidiary of the Crédit Agricole group, Amundi is listed on the stock exchange and currently manages more than €2.2tn in assets under management[2].
Its six international management platforms[3], its financial and extra-financial research capacity, as well as its long-standing commitment to responsible investment make it a leading player in the asset management landscape.
Amundi’s clients benefit from the expertise and advice of 5,700 professionals in 35 countries.
Amundi, a trusted partner that acts every day in the interest of its clients and society. www.amundi.com
[1] Source: IPE “Top 500 Asset Managers” published in June 2024 based on assets under management as of 31/12/2023
[2] Amundi data as of 31/12/2024
[3] Boston, Dublin, London, Milan, Paris and Tokyo
3. Invesco Ltd.is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US$1.85 trillion in assets on behalf of clients worldwide as of December 31, 2024. For more information, visit invesco.com.
4. Fixed income currently forms 20% of The People’s Pension’s main growth stage default and 60% of the retirement default.
5. State Street Global Advisers will continue to manage the remainder of The People’s Pension’s portfolio. The introduction of new asset managers will come into effect by the end of the first quarter of the year.
6. The People’s Pension’s Responsible Investment policy was updated last year. The Climate indices were initially put in place in March 2024.
7. Amundi will also provide The People’s Pension with ESG data, metrics, reporting and data analytics through Amundi Technology’s ALTO platform.
8. Lara Rodriguez and Lindsay Ireland spearheaded the work on equities while Chelsea Parandian and Charlotte Vincent undertook the research on fixed income. Leanne Clements led the responsible investment part of the manager selection process.