UK - The UK Social Investment Forum is to publish guidelines for fund managers in a bid to address trustee scepticism of active shareholding.
The guidelines, which have been put out for consultation, cover how fund managers engage with companies, voting policies and reporting to trustees.
UKSIF hopes the voluntary guidelines will be adopted to varying degrees by all fund managers. UKSIF will then recommend those which agree to meet best practice to trustees.
Twelve fund managers have already agreed to pilot the recommendations from October.
The recent review of trustee compliance with principles set out in the Myners Report showed that less than 10% of schemes had acted on activism.
Three-quarters of pension schemes that had done so relied on the policies of their fund managers. Half were found to “simply accept” the SRI policies of their fund managers.
But UKSIF executive director Helen Wildsmith (pictured) hoped the new guidelines would lead to more active shareholding.
She said: “Fund manager reporting to pension fund trustees that highlights how activism objectives and approaches are prioritised, and how managers assess the impact of their activism, should help to address the trustee scepticism and inaction.”
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Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point