The People's Pension, one of the largest of the new breed of pensions managers in the UK market, has hired State Street as its new core fund manager – in what could be the first step to a major overhaul of its investment strategy.

The People's Pension, a not-for-profit savings provider that has grown in the past three years to take in 1.6 million members, has until now had a simple, low-cost investment strategy using index-tracking funds from Legal & General Investment Management.