THE STEWARDSHIP CODE FOR INSTITUTIONAL INVESTORS
“The ISC Code sets out best practice for institutional investors that choose to engage with the companies in which they invest. The Fund considers that its responsible ownership policy already complies with, and may even exceed, the principles in the ISC Code. However, the Fund believes it has direct relevance for managing its relationships with external investment managers, and will require its managers to state their approach to the ISC Code on a ‘comply or explain’ basis…”
The Fund has contributed to the development of the Stewardship Code through its participation in the Local Authority Pension Fund Forum (LAPFF). The Forum submitted detailed responses to both the FRC consultation exercise on the Stewardship Code, and to the earlier consultation preceding the Walker Review.
Publicly disclose their policy on how they will discharge their stewardship responsibilities.
Have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed.
|3||Monitor their investee companies.|
Establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value.
|5||Be willing to act collectively with other investors where appropriate.|
|6||Have a clear policy on voting and disclosure of voting activity.|
|7||Report periodically on their stewardship and voting activities.|