Tyne and Wear Pension Fund, South Shields, England, shifted £650 million ($802 million) into Legal & General Investment Management's future world index equity strategies, a spokeswoman confirmed.
The strategies offer exposure to global companies with higher governance standards and that have positive social and environmental impact.
The £10.7 billion local government pension scheme shifted the assets into the strategies from its market-cap passive allocations, which were also run by LGIM.
"As active stewards of our members' capital, we have worked closely with LGIM to find an appropriate vehicle that combines a proven investment track record and aligns with our investment beliefs and focuses on generating sustainable long-term returns," said Eileen Leask, chairwoman of the pensions committee at administering authority South Tyneside Council, in a news release Thursday. "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."
Fund executives also plan to increase allocations to active equities and private markets over time, reducing the pension fund's passive exposure to 19% from a current 28%, the spokeswoman added.