TPT to make £75m impact investment
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
Workplace pension scheme TPT Retirement Solutions has announced it will make a roughly £75m investment through its master trust default fund.
Over the long term, members of TPT’s defined contribution default investment strategy will increasingly see their pension allocated to investments that drive positive societal impacts and tackle global social and environmental problems, as defined by the UN Sustainable Development Goals.
TPT said while seeking opportunities “offering high growth potential to enhance returns”, the fund will increase exposure to investments that achieve strong positive impacts like social housing, green infrastructure, and renewable energy. It said the fund will add between 10 and 20 investment components over time to finance impact projects.
Philip Smith, DC director, said: “It shows the ability of master trusts to offer greater diversification and better returns for our members. Not only will the allocation towards impact investment be beneficial to members, but it can also fund projects that impact communities and the environment.”
TPT announced last year that it aims to become carbon neutral by 2050 or sooner through the Paris Aligned Investment Initiative, which supports investors to align their portfolios and activities to the goals of the Paris Agreement. TPT has also pledged to achieve a 50% reduction in emissions by 2030 from its baseline position.
The fund said its DC default investments are advised by asset manager AllianceBernstein.
Pension funds have been accused of not doing enough to achieve positive environmental and societal outcomes in their investments during a Finance for Impact Summit in London last week.
Meanwhile, the government is setting up a new taskforce to help funds integrate social factors in their investments.
How do you drive positive change in your fund’s investments?
