‘Most ESG impact happens at the selection stage’: People’s Pension on net zero in fixed income
As UK defined contribution schemes mature, fixed income is playing a bigger role beyond pre-retirement. Charlotte Vincent, co-head fixed income at People’s Pension shares how the team embeds net zero into mandates, expanding its toolkit
One of the most persistent misconceptions about UK defined contribution (DC) schemes is that they are overwhelmingly equity-driven, with fixed income largely confined to conservative pre-retirement strategies. But more than a decade after the introduction of automatic enrolment, that picture is beginning to shift.
As member bases mature, allocations to fixed income are increasing, not just in retirement-stage funds, but across default strategies.
At People’s Pension, this shift is already visible. In absolute terms, the £40bn master trust holds more fixed income in its default fund than in its pre-retirement strategy — around £5bn versus £4.8bn, according to co-head of fixed income Charlotte Vincent.
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