UK - Pension funds are working more closely with the companies they invest in, according to a survey released by the National Association of Pension Funds (NAPF).
Funds with over £1bn in assets under management were surveyed with results showing most were actively promoting corporate governance.
Joanne Segars, chief executive of the NAPF, commented: “Pension funds and their investment managers have not been shy about raising corporate governance concerns with company management and their constructive approach is getting results.”
Segars continued: “While no one should be complacent, pension funds believe governance standards in UK companies are continuing to improve.”
The research also found each of the 39 funds which responded at least knew about the institutional shareholders’ committee’s statement of principles on institutional investors’ responsibilities.
Two-thirds of these funds had incorporated these principles into managers’ contracts enabling them to intervene and enter discussions when it was felt necessary.
These standards were first published in 2002 and refreshed two years ago. The related framework for voting disclosure was published this summer.
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