UK-based People’s Pension has appointed Robeco to manage its £3.6 billion emerging market equity portfolio in alignment with the £38 billion AUM scheme’s responsible investment (RI) policy.
The move by the UK’s largest commercial master trust pension scheme also signals a shift from a passive approach to an active quantitative strategy, designed to deliver higher risk-adjusted returns to its seven million members.
The new mandate – which follows a nine-month due diligence process – seeks to address structural challenges observed in emerging markets indices, allowing the People’s Pension to set necessary guardrails to ensure a long-term risk-controlled investment approach.
Netherlands-based asset manager Robeco was selected after showing strength across a balanced scorecard, with key factors including performance, risk management, responsible investment and partnership capabilities.
“Forming strong partnerships – such as the one we are forging with Robeco – is central to our strategy. This development is consistent with our aim to deliver the very best returns to members with a best-in-class RI approach,” said Mark Condron, Chair of the People’s Pension Trustee Board.
“The appointment of Robeco is the culmination of an exhaustive search for a partner that aligns to our core investment beliefs,” added Dan Mikulskis, Chief Investment Officer at People’s Partnership, provider of People’s Pension. “Our belief is that a selective active investment approach will lead to better returns for members.”
Robeco’s appointment follows mandates with Amundi and Invesco for developed markets equities and fixed income portfolios respectively, awarded partly for their alignment with the People’s Pension’s engagement priorities.
