UK – Following consultation within the industry, the government has outlined its revised set of principles of investment, as proposed by the Myners’ review, that it wants to encourage pension funds to adopt voluntarily in relation to their investment strategies.
The government suggests that funds will need to set overall liability-linked investment objectives and agree clear mandates with their fund managers if they are to comply with these principles.
Myners’ proposed principles include decisions only being taken by those with adequate skill and knowledge; more performance measurement and rating of advisers, managers and trustees themselves; decision-makers looking at all asset classes; separating actuarial and investment advice; drafting fund manager evaluation periods; paying trustees.
Says Ruth Kelly,Treasury minister: “It is clear that the pensions industry needs to change the way it deals with investment issues. But the best way for this to happen is for the industry itself to take action voluntarily.”
In response to the Myners’ review, the government set out its intention to legislate in order to raise the standard of care required of trustees, as well as to oblige trustees and fund managers to intervene in the interests of shareholders and beneficiaries in investee companies.
Ian McCartney, minister for pensions, comments: “We the_government see the principles of investment as important tools in providing transparency for scheme beneficiaries.”