UK - Trustees have rapped companies that fail to provide enough social responsibility and environmental information for investment decisions.
Research by socially responsible investment pressure group Just Pensions is underlined by trustees who argue that good corporate governance practices is a significant factor in both short and long-term investments.
Trades Union Congress general secretary-elect Brendan Barber said in the report: “Member-nominated trustees are already largely convinced there is a clear financial case for good governance.
“They believe that other employment practices will over time also have an increasing impact on the bottom line.”
The report found that more than a third of trustees were convinced that pension fund activism will change how companies manage core business areas within the next 10 years, while almost half believed there will only be some improvement.
UK Social Investment Forum executive director Helen Wildsmith added: “With a quarter of trustees from larger funds stating that SRI expertise had a substantial impact on the selection of fund managers and a further 25% stating that it had some impact, we are starting to see an increased focus on the implementation of pension fund SRI policies.”
Nearly all of the statements of investment principles of pension funds of the trustees being surveyed promoted engagement with companies in which there was a share-holding.
And nearly 79% of these funds had sought advice with an investment consultant on dealing with these issues.
Over 100 member-nominated pension scheme trustees took part in the survey, from funds ranging from £5bn in assets to £500m in assets.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.