One of the UK’s most significant pension funds, The People’s Pension, has withdrawn £28bn from State Street, marking a significant pushback against the retreat from environmental, social, and governance (ESG) investing among prominent US asset managers.
After reviewing its responsible investment policy, The People’s Pension reallocated £20bn in developed market equities to Amundi and £8bn in fixed-income assets to Invesco, citing a stronger focus on sustainability and active stewardship. It retained just £5bn with State Street, which had previously managed its assets.
This decision reflects growing tensions between long-term investors and US asset managers, many of whom have scaled back ESG commitments following Donald Trump’s election. Asset managers have also faced increasing pressure from right-wing campaigns opposing corporate action on climate change and diversity initiatives.
Mark Condron, chair of trustees for The People’s Pension, emphasized the fund’s commitment to balancing strong financial performance with responsible investment principles, stating: “By selecting Amundi and Invesco, we have chosen to prioritize sustainability, active stewardship, and long-term value creation.”
This move underscores the deepening divide over ESG investing and signals that major investors are willing to take bold action to ensure their portfolios align with long-term sustainability goals. Read More
News Credit: Financial Times
Picture Credit: Jason Alden/Bloomberg