The Tyne & Wear Pension Fund has invested £650m in the Future World index equity fund range in a bid to up its generation of sustainable returns for members.
The fund range - which is managed by Legal & General Investment Management (LGIM) - was chosen by the South Tyneside Council-administered fund for its broad exposure to global equities.
In particular, it said the fund range is designed to favour companies with high governance standards and those which aim to achieve positive environmental and social impacts. This includes funds which are less carbon-intensive, or those which earn green revenues.
Tyne & Wear Pension Fund, which is currently set to merge with the £1.4bn Northumberland County Council Pension Fund, has a long-standing history of partnership with LGIM.
LGIM head of local authorities James Sparshott said: "As a longstanding client, the Tyne & Wear Pension Fund has always been an active investor, regularly engaging with our 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."
South Tyneside Council pensions committee chair Eileen Leask added: "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."
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