Defined contribution provider the People’s Pension, which manages £38bn in members’ assets, has appointed a new manager for a £3.6bn active emerging market equity brief.  

The master trust said it has appointed Robeco as it is changing its EM portfolio from passive to an active quantitative strategy for higher risk-adjusted returns and greater alignment with its responsible investment strategy. It cites “structural challenges observed in markets and indices in the region” as a driver.  

The People’s equity team ran the nine-month selection exercise, looking at performance, portfolio construction and execution, teams and resources, risk management, firmwide considerations, responsible investment, and partnership capabilities.  

“The appointment of Robeco by the trustee is the culmination of an exhaustive search for a partner that aligns to our core investment beliefs. Their cutting-edge approach will enable us to maximise the very best value from emerging markets,” said chief investment officer Dan Mikulskis. “Our belief is that a selective active investment approach will lead to better returns for members.”  

Mark Condron, who chairs the trustee board of the master trust, added: “Forming strong partnerships – such as the one we are forging with Robeco – is central to our strategy. This development is consistent with our aim to deliver the very best returns to members with a best-in-class RI approach.”  

Weili Zhou, head of quant investing and research, deputy CIO at Robeco, said the firm is proud to have earned the trust of the People’s Pension.   

The bespoke solution “leverages our market-leading quantitative investment expertise, combined with our proprietary sustainable investment frameworks and innovations”, she explained.  

The appointment follows the People's decision to give mandates for passive equities to Amundi and £8bn of active fixed income to Invesco Asset Management earlier this year. State Street Global Advisors, previously the sole manager, retained roughly £4bn.