Pension fund makes a £650m investment

The Tyne and Wear Pension Fund has invested £650million into a new range of funds called the Future World Index Equity Funds.

Those making the decision say this allocation will deliver better returns for members over the long period and it is part of an on-going commitment to generating sustainable long-term returns in a responsible manner.

This range of funds, managed by Legal and General

Investment Management (LGIM), invests more in companies which score well against environmental, social and governance criteria – including companies that are less carbon-intensive or which earn green revenues.

Coun Eileen Leask, chair of the Pensions Committee at South Tyneside Council, which administers the Tyne and Wear Pension Fund that also covers Sunderland and other areas, said: “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, head of the local authorities at LGIM, added: “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.”