SHOCKING MOVE: UK Pension Giant DUMPS £28BN in ESG Spat!
In an unprecedented and jaw-dropping financial shakeup, one of the UK’s largest pension funds has yanked a staggering £28 billion from State Street, making waves across the investment world! This seismic shift isn’t just a cash grab; it’s a powerful statement against the recent retreat from Environmental, Social, and Governance (ESG) principles among major US asset managers.
PEOPLE’S PENSION GOES FOR GOLD: £20BN FOR AMUNDI, £8BN FOR INVESCO!
Hot on the heels of a thorough review of its responsible investment policy, The People’s Pension has decided to put its money where its mouth is, handing a colossal £20 billion developed market equity mandate to Amundi and reallocating a whopping £8 billion of fixed-income assets to Invesco. That’s right — they’ve slashed their ties with State Street down to just £5 billion from a previous total of £33 billion! Talk about a game-changer!
US ASSET MANAGERS IN THE HOT SEAT: TENSIONS RISE!
This explosive decision comes amidst an escalating showdown between long-term investors and US asset managers who have shockingly downgraded their commitment to ESG investing since the Trump era. Reports of rightwing campaigns targeting these asset managers over climate action and diversity efforts have only added fuel to the fiery debate.
“We’ve chosen to prioritize sustainability and long-term value creation,” declared Mark Condron, chair of trustees at The People’s Pension. This bold move marks a clear divide – are you with responsible investment or not?
A NEW ERA FOR INVESTING: EUROPE VS. US!
Dan Mikulskis, the sharp-minded chief investment officer of People’s Partnership, emphasizes a monumental shift in the landscape: "We’re seeing a significant rift between US and European asset managers, and that’s a HUGE story!" With the fund aiming to keep global warming below a cataclysmic 1.5C, the path ahead is paved with intent and determination.
The People’s Pension is expanding fast, predicted to jump from £33 billion to a jaw-dropping £60 billion by decade’s end, serving nearly 7 million members!
STATE STREET UNDER FIRE: CRITICIZED FOR WEAK STANCE ON ESG!
In a scathing critique, responsible investment campaign group ShareAction has called out State Street, alongside its counterparts BlackRock, Fidelity Investments, and Vanguard, for an alarming "retreat from ambition," as these giants managed a meager 7% support for shareholder resolutions on ESG last year. The public outcry is growing louder!
Amundi is touting its responsible investment commitments post-mandate, with a climate-focused £20 billion equity index that demands serious attention. Meanwhile, Invesco is set to align £8 billion in sovereign and corporate bonds with net-zero goals, actively engaging issuers on ESG.
STATE STREET MAKES A COMEBACK ATTEMPT!
Despite the turmoil, State Street isn’t throwing in the towel. They’re eyeing expansion among UK pension schemes, announcing a “strong pipeline” of business for the year. “We look forward to continuing our work with The People’s Pension!” they declare, but can they recover?
As 26 financial institutions and pension funds unite in a collective plea for more vigorous climate risk engagement, the stakes continue to rise.
PIQUING CONCERNS: CALPERS WEIGHS IN ON CLIMATE DISCLOSURE!
Big names like the $536 billion California Public Employees’ Retirement System (Calpers) are ringing alarm bells over potential weakening of climate reporting standards. Their CEO, Marcie Frost, is sounding the alarm, expressing “concerns” after signals from the SEC. They’re vowing to keep major companies accountable on climate disclosures, underscoring the urgency of the situation.
This isn’t just finance – this is a REVOLUTION redefining how we invest for the future! Keep your eyes peeled, because the battle for responsible investment is just heating up!
photo credit: www.ft.com
