U.K. multiemployer plan TPT Retirement Solutions, London, switched £510 million ($714 million) in passive market-cap equity funds into low-carbon transition strategies, a spokeswoman said.
The assets will be run in Legal & General Investment Management’s low-carbon transition index equity strategies. LGIM was also the passive market-cap equity manager for the assets.
The allocation to the LGIM Low Carbon Transition Index Equity Fund range is the first made by TPT to dedicated low-carbon strategies. Cliff Speed, CIO of TPT Retirement Solutions, said Tuesday in a news release that the investment in this fund range will enable the plan to reduce the carbon exposure of its equity portfolio and align it with its climate change policy. It will also help the plan to meet regulatory requirements.
The allocation applies to the plan’s £11.2 billion in defined benefit assets. TPT Retirement Solutions runs a further £2 billion in defined contribution assets.
The allocation represents 35% of the plan’s total allocation to listed equity.
LGIM was selected due to its established track record of engaging with companies and actively using its voting rights to promote stronger governance with both index constituents and index providers, the spokeswoman said.