Willis Towers Watson's U.K. multiemployer defined contribution plan, LifeSight, will allocate £740 million ($949.9 million) in equity investments within its default fund to environmental, social and governance strategies.
The change represents about half the fund's equity assets and will be fully implemented in the next month, said David Bird, head of proposition development for LifeSight, in comments provided by a spokesman.
The allocation will be split between strategies managed by Legal & General Investment Management, a spokeswoman said. One strategy tracks the MSCI Adaptive Capped ESG Universal index and invests in developed and emerging markets, and in firms with strong and improving ESG attributes; and the other is an active strategy that invests in equities in a systematic way based on quality, momentum, low volatility, valuation and other factors benchmarked to the Robeco Global Sustainable Multi-Factor Equities index.
"We currently invest in global equities, and this change reflects an evolution to how we implement this allocation," Mr. Bird added. He did not comment on the money managers affected by the decision to reallocate equity assets to these strategies.
LifeSight has a total of £2.1 billion in assets across its default and self-select funds.