TPT Investment Management (TPTIM) has unveiled a new £600m global equity fund designed to help UK defined benefit (DB) pension schemes access diversified global equity exposure and scale efficiencies.

Seeded with £600m from TPT’s DB master trust, the fund will be made available through TPT’s fiduciary management service and aims to outperform the MSCI All Country World Index over the long term.

It combines allocations to specialist active managers with a low-carbon transition passive strategy to deliver sustainable, risk-adjusted returns.

TPTIM said the launch responded to “growing demand” from pension schemes seeking reliable, long-term returns in an increasingly complex regulatory and market environment.

The fund will also draw on TPTIM’s scale, enabling schemes to access attractive risk premia that might otherwise be difficult to reach.

The fund marks the seventh collective investment vehicle launched by TPTIM to date, forming part of its wider strategy to simplify access to diversified investment strategies and create scale benefits for schemes joining its platform.

Indeed, TPTIM investment director, Peter Smith, said the new fund represented another step in broadening the firm’s offering and reinforcing its consolidation model.

He explained that the fund will “help to further diversify TPT’s offering to members and schemes”, while expanding its range of solutions that “combine scale, diversification and the flexibility to meet different financial objectives and risk profiles”.

Smith added that consolidation remained “at the heart” of TPT’s approach.

This fund launch exemplifies our commitment to delivering market-leading products that put members first and help schemes benefit from the efficiencies of scale across DB, defined contribution (DC) and collective defined contribution (CDC) arrangements,” he said.

He also noted that the launch builds on TPT’s DC proposition unveiled earlier this year, which offers members “a straightforward, sustainable stream of income in retirement” supported by digital tools to make pension decisions easier.

Echoing this, TPTIM investment operations director, Nic Ashworth, described the fund as the final piece in a “comprehensive suite” of investment options available to schemes of all sizes.

He said the addition of the fund means TPTIM can now provide “a tailored and diversified portfolio across both public and private markets”, complementing its LDI strategies.

“All our funds are open-ended and unitised, giving schemes flexibility across product sets, end-game solutions and investment strategies,” Ashworth concluded.

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