TPT Retirement Solutions will make a £75m impact investment through its master trust default fund.
The investment strategy for this default fund is managed by AllianceBernstein. As a result of this new commitment members will see an increasing proportion of their pension funds allocated to investments nurturing positive societal impacts and tackling global social and environmental problems, as defined by the UN Sustainable Development Goals (SDGs).
This will include investments into social housing, green infrastructure, and renewable energy, that also offer good growth potential for members to help boost overall returns. The fund will add between 10 and 20 investment components over time to finance impact projects.
TPT said there will be no increased costs to members as a result of these changes.
TPT Retirement Solutions DC director Philip Smith says: “This investment reflects our wider commitment to providing best-in-class, cost-efficient investments for pension members through our responsible investment framework.
“[This announcement] 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.”
This announcement follows TPT’s commitment last year to the goal of net zero emissions by 2050 or sooner through the Paris Aligned Investment Initiative. This includes a pledge to achieve a 50 per cent reduction in emissions by 2030 from its baseline position.