Half of managers that are signatories to the United Nations backed Principles for Responsible Investment (PRI) in reality have a weak responsible investment rating, according to research.
Lane Clark and Peacock's (LCP) survey of over 100 investment management firms showed despite increasing numbers of managers signing up to the PRI, 51% of those registered had a fairly weak to weak rating.
Out of the total 100 firms, 67% had a ‘fairly weak' to ‘weak' responsibility score with only 9% rated as ‘strong'. The strong responsibility investment score increased to only 14% for the 65% of investment managers with PRI approval while the proportion of managers with a fairly strong score increased from 24% to 35% with PRI approval.
The survey covered key issues including underlying levels of commitment and resources; voting procedures; engagement on topical environmental, social and governance issues; and collaboration with other investors.
Its findings highlighted the importance of looking underneath managers' headline commitments to responsible investment.
LCP partner Mark Nicoll said: "Just because a manager signs up to PRI doesn't necessarily mean they take responsible investment seriously. There remains room for the rhetoric to catch up with reality.
"It takes relatively little effort for an investment manager to give the appearance that they are concerned about responsible investment issues. This can easily be done by producing glossy marketing material, by joining relevant industry groups or indeed by signing up to PRI."
Nearly every trustee is confident of the next stage in their scheme’s strategy, despite almost an equal number being forced to consider replacing plans within the prior 12 months, according to research by Barnett Waddingham.
Master trusts’ investment strategies have grown and become more sophisticated over the last three years, but “growing pains” are hindering progress, according to the Defined Contribution Investment Forum (DCIF).
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group.