The People's Pension (TPP) has announced the appointment of Amundi and Invesco to manage £28bn in assets, with a focus on responsible investment.

Amundi will manage £20bn in passive developed market equities, while Invesco will manage more than £8bn in active fixed-income investments for TPP’s £32bn defined contribution (DC) scheme.

TPP said both appointments represented a "major evolution" and a step toward achieving greater alignment with the group's broader stewardship approach and priorities.

The passive equity portfolio awarded to Amundi consists of five regional sleeves covering major developed markets and will continue to include climate-focused indices aligned with TPP’s responsible investment policy.

TPP said that, during the selection process, Amundi showed strength in all areas of the team's balanced scorecard.

This scorecard was applied to all managers and looked for areas of excellence across six key factors: portfolio construction, people and teams, risk management and systems, firmwide considerations, responsible investment and partnership capabilities.

Meanwhile, the fixed income mandate awarded to Invesco spans sovereign bonds, investment-grade credit, and high-yield bonds across the UK, US, Europe and emerging markets.

The appointment met TPP's requirement for a manager who could serve as a long-term strategic partner, with experience across a range of sub-asset classes and capable of delivering superior returns for members with strong market access, which is particularly important given the scheme's scale.

Invesco's approach will feature net-zero alignments, alongside environmental, social, and governance (ESG) analysis and active engagement with issuers to promote sustainable business practices while delivering robust long-term returns.

Both new managers were selected following an extensive research and due diligence process run by the equity and fixed-income teams at People's Partnership.

The move also follows the recent transition of £28bn of assets into segregated mandates held by the TPP’s custodian, Northern Trust.

People's Partnership chief investment officer, Dan Mikulskis, said the appointments culminate "months of work" for his team, signalling a "major evolution" for TPP as it continues to grow and enhance its investment strategy.

"As one of the fastest-growing asset owners in the UK, we are responsible for delivering strong, sustainable returns for our members and a best-in-class investment strategy. Both managers bring exceptional expertise and share our commitment to responsible investment, which is central to our approach."

TPP chair of trustees, Mark Condron, added: "Our move to segregated mandates alongside partnering with world-class asset managers demonstrates our ongoing commitment to being a leading force for positive member outcomes in the pensions industry.

"These appointments highlight TPP's broader mission to balance strong financial performance with responsible investment principles. By selecting Amundi and Invesco, we have prioritised sustainability, active stewardship, and long-term value creation for our nearly seven million members."

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