AUSTRALIA - Superannuation funds and consultants should address all material risks - including environmental, social and governance (ESG) issues - in their investment decision making process, according to the latest investment guidelines from the Australian Council of Super Investors (ACSI).
The ACSI – which represents A$250bn (US$226) in funds under management – released its updated investment guidelines yesterday that urged fund managers and trustees to take a “long-term view” when managing the risks, impacts and opportunities associated with ESG policy.
The guides, one for trustees and one for consultants said investors should be “active owners” by exercising their voting rights, engaging with the companies’ they invest in and actively monitoring governance practices.
The guidelines say: “Superannuation funds (as investors) need to be satisfied that the directors they elect to govern companies are focused on identifying and mitigating the risks and maximising the opportunities associated with material governance issues.
“Although monitoring governance risks does not prevent corporate failure or collapse, it can reduce the risk of corporate failure and thereby potentially protect and enhance members’ wealth in the long-term.”
Kim Gubler says it is time that schemes and administrators reassess SLAs and look at what real people need from their pension schemes and when
The Pensions Regulator (TPR) is focusing on reducing the number of "poorly-run" schemes as it seeks to improve standards across the board.
Prudential Retirement has completed around $2.6bn (£2bn) of reinsurance contracts for UK pension scheme longevity risk since the start of the year, it has disclosed.
Funding standards for DB schemes have increased exponentially over the past decades. Con Keating says such significant overstatement of liabilities will lead to pushback through the courts.