Paris-based Amundi has been appointed by The People’s Pension, one of the largest independent master trusts in the UK, to manage a £20 billion developed markets equity index climate focused mandate.
According to an article in the Financial Times, TPP pulled £28bn from US-based State Street following a review of its responsible investment policy and as US asset managers retreat from ESG following Donald Trump’s election as president for the second time.
TPP also handed £8bn of fixed income assets to Invesco, leaving just £5bn with State Street, which had previously managed all of TPP’s £33bn of assets.
In a press statement, Amundi said it had been selected because of “the strength of its index portfolio construction, risk management capabilities and its high industry expertise”.
“In particular, Amundi’s industry-leading responsible investment commitments, which align with TPP’s stewardship priority areas, were a key factor in the appointment. This mandate is the latest addition to Amundi’s fast growing DC pension scheme business in the UK and globally.
Amundi’s Equity Index Team will be responsible for the management of the mandate across five regional equity index portfolios.
Lionel Brafman, Head of Equity ETF & Indexing, Amundi ETF and Indexing business line, will be the lead portfolio manager. He will be supported by Isabelle Lafargue, Deputy Head of Equity ETF & Indexing. Both will be under the leadership of Laurent Trottier, CIO of Amundi ETF and Indexing business line.
Eric Bramoullé, CEO of Amundi UK, said: “As one of the largest independent master trusts in the UK, our partnership with TPP marks a turning point in our UK offering and we are delighted to work closely with the team to meet their investment objectives.”
