Copying and distributing are prohibited without permission of the publisher
UK pensions body in stewardship push
17 October 2013
NAPF calls for greater transparency among asset managers
UK pension trade body, the National Association of Pension Funds (NAPF), has published a Stewardship Disclosure Framework.
The Framework, which builds on its Stewardship Policy and Principles published in late 2012, is designed to give pension funds more transparency around their asset managers' stewardship policies and activities.
The NAPF has called on the 206 asset mangers that are signatories to the UK Stewardship Code to complete the Framework, which will be published online and will provide an ‘at a glance’ comparison between managers.
Mark Hyde Harrison, NAPF chairman, called the Stewardship Disclosure Framework “a powerful tool” to help pension funds assess their asset managers' approach to stewardship.
“It will be invaluable both when funds are assessing prospective managers and when they are holding their current managers to account for how their funds are being managed on their behalf,” he said.
So far, JPMorgan, Aviva, Newton and LGIM have already completed the Framework, while Harrison said he hoped “many more” managers would also complete the Framework and added it the NAPF would report on progress at its March Investment Conference.
The NAPF said the Framework, and other initiatives, such as monthly 'hot topic questions, were part of a wider effort to help pension funds understand mangers' stewardship approaches, to help them select mangers aligned with their own values.
Vince Cable MP, business secretary, said: "In our response to the Kay review we challenged business and the investment industry to develop and promote good practice in stewardship.
"A commitment to stewardship on the part of investors is critical to the long-term success of UK companies. NAPF's Framework is an important contribution in meeting that challenge. I hope it will lead to improved dialogue between asset owners and asset managers about what good stewardship looks like."
The NAPF added its Stewardship Policy would help pension funds, by setting out a “a clear roadmap of how they can address their stewardship responsibilities”.
It sets out six best practice principles that funds should consider, including having a policy on stewardship, setting relevant criteria for manager searches, and the incorporation of monitoring of stewardship activities into manager reviews.