In a major shift, The People’s Pension (TPP) has appointed Amundi and Invesco to manage £28 billion ($35.3 billion) of its assets, emphasizing responsible investment and sustainability. Amundi will oversee £20 billion ($25.2 billion) in climate-focused equity investments, while Invesco will manage £8 billion ($10 billion) in fixed income assets aligned with net zero targets.

The decision follows a strategic review of ESG policies and stewardship priorities, moving away from State Street, which previously managed the entire portfolio and will now retain £5 billion ($6.3 billion).

A Major Shift in Asset Management

This transition underscores TPP’s commitment to long-term value creation through sustainable investing. “These appointments highlight our mission to balance strong financial performance with responsible investment principles,” said Mark Condron, Chair of Trustees at TPP.

Previously, State Street Global Advisors, the third-largest U.S. asset manager, had full control of TPP’s investments. However, amid concerns over declining support for environmental and social shareholder proposals, the fund has diversified its management.

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Why Amundi and Invesco?

Following an in-depth ESG review, TPP found that Amundi and Invesco best align with its sustainability goals.

Amundi, Europe’s largest asset manager, will manage £20 billion ($25.2 billion) in passive equity investments using a climate-focused index strategy. The firm will also provide ESG data, reporting, and analytics through its ALTO platform.
“Clients are increasingly looking for strong returns alongside responsible investment commitments,” said Jean-Jacques Barbéris, Head of ESG at Amundi.
Invesco will oversee £8 billion ($10 billion) in fixed income investments, focusing on net zero alignment and active engagement with issuers. A long-time signatory of the Principles for Responsible Investment (PRI), Invesco conducted over 2,200 ESG-related engagements in 2023.
“We are thrilled to partner with TPP and deploy our global fixed income expertise,” said Tony Wong, Senior Managing Director at Invesco.

TPP’s Growing ESG Commitment

TPP recently updated its Responsible Investment policy in April 2024, focusing on climate change, nature, and human rights. Rather than excluding companies, the fund aims to engage with investees to encourage sustainable practices.

“This is a major evolution for The People’s Pension,” said Dan Mikulskis, CIO at People’s Partnership. “Both Amundi and Invesco bring expertise and share our ESG commitment.”

The State Street Factor

State Street’s role in TPP’s portfolio has significantly decreased amid scrutiny over its declining ESG support. In early 2025, the firm backed just 6% of environmental and 7% of social shareholder proposals, mirroring trends seen at BlackRock and Vanguard.

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

Looking Ahead

This strategic shift signals a growing trend among pension funds to diversify asset managers and prioritize sustainability-focused investments. With Amundi and Invesco now managing the majority of TPP’s assets, the fund aims to deliver long-term, sustainable value to its nearly seven million members.

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