UK’s largest pension fund pulls £28b of assets from State Street

10:39pm on 27 February 2025

The news: The UK’s largest pension fund, The People’s Pension, has moved £28 billion ($56.3 billion) in assets from State Street to Amundi and Invesco, citing the companies’ sustainability and responsible investment credentials.

The numbers: The People’s Pension awarded £20 billion to Amundi to manage in passive developed market equities, while Invesco will take over £8 billion in active fixed income investments.

The context: A statement from The People’s Pension released on Thursday says that the mandates follow a review of its Responsible Investment Policy, which was updated to include climate indices in March 2024.

State Street is among a slew of Wall Street giants which have pulled out of the Climate Action 100+ coalition, as US firms increasingly step back from environmental, social and governance (ESG) programs that are out of favour with the current administration.

State Street will continue to manage the remaining amount in the People’s Pension portfolio, which has a total of around £32 billion, according to the statement. The introduction of new asset managers will come into effect by the end of the first quarter of the year.

What they said: Mark Condron, chair of trustees for The People’s Pension, said: “By selecting Amundi and Invesco, we have chosen to prioritise sustainability, active stewardship, and long-term value creation for our near seven million members.”

Dan Mikulskis, chief investment officer at People’s Partnership (which operates The People’s Pension), 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.”

The source: The People’s Pension statement