TPT Retirement Solutions, one of the leading workplace pension schemes in the UK, will make a c.£75 million impact investment through its defined contribution (DC) Master Trust default fund.
Members of TPT’s DC default investment strategy, whose investments are advised by AllianceBernstein, will over the long-term, increasingly see their pension allocated to investments nurturing positive societal impacts and tackling global social and environmental problems, as defined by the UN Sustainable Development Goals (SDGs).
While seeking investment opportunities offering high growth potential to enhance returns, the fund will increase exposure to investments attaining strong positive impacts like social housing, green infrastructure, and renewable energy. The fund will add between 10 and 20 investment components over time to finance impact projects.
Members of TPT’s DC Master Trust default fund will see no change in costs.
Philip Smith, DC Director at TPT Retirement Solutions, said:
This investment reflects our wider commitment to providing best-in-class, cost-efficient investments for pension members through our responsible investment framework. 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.
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. TPT has also pledged to achieve a 50% reduction in emissions by 2030 from its baseline position.
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