One of the UK’s leading pension funds, the People’s Pension, has made a significant move by withdrawing £28bn (US$35bn) from State Street, as part of its strategic alignment towards enhanced Environmental, Social, and Governance (ESG) goals.

This reshuffling involves reallocating a substantial £20bn (US$25bn) to Amundi, and another £8bn (US$10bn) to Invesco.

Consequently, only £5bn (US$6.2bn) remains under State Street’s management, notably reduced from its initial total assets control.

This strategic reallocation aligns with a broader scrutiny over ESG commitment levels seen across numerous US financial institutions.

Dan Mikulskis, the Chief Investment Officer at the People’s Partnership, articulates this move as “the culmination of months of work”, aiming to bolster their investment methodology significantly as the fund continues its rapid growth.

“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,” Dan explains.

The selection of Amundi and Invesco was praised for their shared commitment towards responsible investing, pivotal to the People’s Pension’s strategy.

Understanding the Rational Behind The New Alignments

The decision to transition asset management from State Street was underscored by several key considerations. State Street Global Advisors, in its half-year report for 2025, delineated a support of only 6% of environmental and 7% of social shareholder proposals.

This indicates a 14% and nearly 50% decline respectively in their proactive environmental and social engagements compared to previous years. Not isolated in this trend, other major institutions like BlackRock and Vanguard also demonstrated similar retractions.

“Over the past few years, shareholder proposals have also become increasingly complex,” according to the report from State Street.

“While we assess alignment of climate targets with relevant jurisdictional commitments, specific temperature pathways, and/or sectoral decarbonisation approaches, State Street Global Advisors is not prescriptive on target setting or target alignment.”

Mark Condron, the Chair of Trustees for the People’s Pension, emphasises that the transition to segregated mandates amplifies their overarching aim to merge robust financial performance with foundational responsible investment principles.

This shift, Mark says, “demonstrates our ongoing commitment to being a leading force for positive member outcomes in the pensions industry,” facilitated by integrating world-class asset managers to the fold.

Choosing Amundi and Invesco: A Strategic Fit

Amundi has taken the helm of passive developed market equities to the tune of £20bn. As the largest asset manager based out of Paris, it heralds a robust reputation as a “responsible asset manager”, secured by an A+ rating across all categories from the Principles for Responsible Investment (PRI) in 2020.

Its dedicated ESG team, directly reporting to the CEO, ensures a comprehensive ESG integration across their investment platforms. The decision was lauded by Valérie Baudson, CEO of Amundi, affirming a vested commitment to align with the goals of British pensioners.

Its method fuses meticulous ESG analysis with the steadfast objective of fostering sustainable business models.

Tony Wong, Senior Managing Director & Co-Head of Investments at Invesco, expressed enthusiasm about the strategic partnership, poised to capitalise on their extensive global fixed income resources to generate optimal outcomes for the scheme’s members.

This strategic realignment by the People’s Pension not only reflects a dynamic shift in investment strategy but also underscores the growing significance of ESG considerations within the realms of global asset management.