Amundi and Invesco to Run Assets of People’s Pension

The UK’s largest commercial market trust People’s Pension, is moving around $34.7 billion, the bulk of its $40.27 billion assets — to Amundi and Invesco, which will run the assets with a focus on responsible investment.

The assets will be moved to the managers from State Street Global Advisors by the end of March. SSGA will continue to run the remainder of the portfolio. The two 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.

While Amundi, Europe’s largest asset manager, will manage $25.17 billion in passive developed market equities, Invesco, will take responsibility for more than $10.07 billion in fixed income investments for the $40.27 billion defined contribution (DC) scheme. 

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 policy. 

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, firm-wide considerations, responsible investment and partnership capabilities. 

The fixed income mandate awarded to Invesco spans sovereign bonds, investment-grade credit, and high-yield bonds across the UK, the US, Europe and Emerging Markets.

The appointment of Amundi and Invesco also 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.

Major Evolution                                                                                     

People’s Partnership Chief Investment Officer Dan Mikulskis said that the two appointments were the culmination of months of work for their team, signalling a major evolution for The People’s Pension as it continues to grow and enhance 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,” Mikulskis added.

Mark Condron, Chair of Trustees for The People’s Pension, said that their move to segregated mandates alongside partnering with world-class asset managers demonstrates their 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, they have chosen to prioritise sustainability, active stewardship, and long-term value creation for their near seven million members, he pointed out.

Amundi’s CEO Valérie Baudson said that they will work The People’s Pension 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 that as a long-term partner for The People’s Pension in generating the best possible outcomes for the Scheme’s members, they will deploy the asset allocation, research and portfolio management with the help of the expertise of Invesco’s nearly 200 professionals in global fixed income team.