Earlier this week, the People’s Pension moved $35 billion in assets to Amundi and Invesco following an increase in ESG concerns. The People’s Pension is one of the biggest pension funds in the UK, provided by People’s Partnership. The pension’s assets were previously managed by global financial services firm State Street, which is currently managing only $6.2 billion of investments.
Prior to this announcement, State Street reported that only 7% and 6% of social and environmental shareholder proposals had received support, respectively. These figures represent an almost 50% drop in support for the tackling of social issues and a 14% reduction in support for environmental proposals, as compared to 2023 data.
State Street isn’t the only company that’s pulled back from ESG either. Recent data shows that Vanguard and BlackRock supported fewer social and environmental proposals last year as compared to 2023.
Dan Mikulskis, the Chief Investment Officer of the People’s Partnership, stated that the move signaled the company’s evolution as it continued to enhance and grow its investment strategy. He explained that the fund had a duty to deliver sustainable and strong returns to its members, noting that both Invesco and Amundi shared their focus on responsible investing.
Mark Condron, the Trustee Chair of the People’s Pension added that their decision to move their assets highlighted their broader mission of balancing stellar financial performance based on responsible principles of investment.
Condron asserted that by selecting Invesco and Amundi, the fund had chosen to prioritize sustainability and the long-term creation of value for millions of its members.
So, why Invesco and Amundi?
Amundi, which received $25 billion in investments, is the biggest asset manager in Europe. The asset manager has a dedicated ESG department and an A+ rating in every category under the Principles for Responsible Investment. In addition to this, it has integrated ESG criteria in all of its investment platforms.
In a statement, Amundi CEO Valérie Baudson stated that they were proud to be chosen to work with the pension fund and would act in the best interests of pensioners.
Invesco, an independent investment management firm that received $10 billion in investments, utilizes an approach that features ESG analysis and active engagement with issuers alongside net zero alignment to promote sustainable business practices.
Invesco’s Senior Managing Director and Co-Head of Investments Tony Wong revealed that they were excited to be a long-term partner for the People’s Pension. He noted that they would deliver the full scope of their capabilities to the partnership.
These movements of capital away from investment funds that seem to be laggards in embracing ESG provides encouragement to entities like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) that are integrating these principles in every layer of their operations. This is because they could soon become major investment destinations for pension funds and other pools looking to put their money in ventures that walk the talk of ESG.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
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