Holding an asset manager to account on stewardship
29 May 2020 - Estimated reading time: 5 minutes
An £800m pension scheme had an ambition to embrace responsible investment considerations.
Having helped the Trustees develop their formal responsible investment policy, which includes a focus on sustainable investment and an active approach to stewardship, the Trustees identified that engagement has a key role to play in promoting long-term value. As a means of providing focus, the Trustees concentrated on two key themes: climate change and executive remuneration.
After one asset manager wasn’t meeting the requirements, we advised the Trustees to review their long-term role in managing assets for the Scheme and established clear measures for their improvement.
This case study demonstrates our belief that asset owners can:
- actively engage with and challenge their investment managers, even when monies are invested in pooled funds;
- concentrate on specific issues as a means of focusing engagement activity and embed this into a regular manager oversight programme; and
- use stewardship as a means of differentiating between managers.