The Tyne and Wear Pension Fund, administered by South Tyneside Council, has invested £650m in the Future World Index Equity Fund range, managed by Legal & General Investment Management (LGIM), as part of its ongoing commitment to generating sustainable long-term returns in a responsible manner.
1 Jul 2020
The fund range offers broad exposure to global equities for pension schemes which want to express a conviction on ESG (Environmental, Social and Governance) themes. In particular, the fund range is designed to favour those companies that have higher governance standards and aim to achieve positive social and environmental impacts, including companies which are less carbon-intensive or earn green revenues.
Importantly, the fund range seeks to provide investors with similar performance and risk characteristics as traditional market capitalisation benchmarks while delivering on improving key ESG metrics in an ever-changing world.
This announcement marks a further strengthening of the long-term partnership between Tyne & Wear Pension Fund and LGIM, underlining their joint commitment to sustainable investment strategies.
Councillor Eileen Leask: "As active stewards of our members’ capital, we have worked closely with LGIM to find an appropriate vehicle that combines a proven investment track record and aligns with our investment beliefs and focuses on generating sustainable long-term returns. We believe that this allocation will both deliver better returns for our members over the long term, while also helping to build a world in which they will be able to most enjoy their retirement."
James Sparshott: "As a longstanding client of LGIM, the Tyne and Wear Pension Fund has always been an active investor, regularly engaging with our Investment Stewardship team. The decision to invest a significant portion of assets into our Future World fund range marks another significant step in our partnership to deliver positive change."
The Tyne and Wear Pension Fund is part of the Local Government Pension Scheme and is administered by South Tyneside Council. The Fund is currently valued at £10.7 billion. It provides a pensions service for six councils in the North East of England (South Tyneside Council, Gateshead Council, Newcastle Council, North Tyneside Council, Northumberland Council and Sunderland Council) and 180 other organisations that provide a public service within the area. There are around 168,000 members in the Fund.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Investment Management
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.16 trillion1 ($1.47tn, €1.35tn, CHF 1.31tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1 Data as at 30 June 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong.
Assets under management include securities and derivatives positions
*as at HY 2023