Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

More documents

Recommendations

Info

I n v e s t m e n t r e p o r t Corporate governance and socially responsible investment Introduction The Pensions Committee recognises its role as one of promoting best practice in corporate governance which is considered to be consistent with seeking long term returns. As a result, the fund requires its UK equity managers to comply with the Financial Reporting Council’s (FRC) UK Stewardship Code and asks that other investment managers should be required to follow it as far as possible. Previously UK equity managers were required by the funds Statement of Investment Principles to comply with the Institutional Shareholders Committee (ISC) Combined Code on Corporate Governance. The ISC Code has now been replaced by the FRC’s UK Stewardship Code. The Pensions Committee policy on socially responsible investment is to endorse the United Nations (UN) Principles of Responsible Investing and encourage all its equity managers to sign up. All the pension funds current equity managers are signed up to the UN principals therefore promising to incorporate environmental, social and governance issues into their investment process. The Principles were developed by an international group of investors, reflecting the increasing relevance of environmental, social and governance issues to investment practices. Governance issues refers to the way an organisation is directed and controlled by management. Details of the funds individual investment manager corporate governance and socially responsible investment policies, as well as details on the UK Stewardship Code and the UN principles are available on the Staffordshire Pension Fund website www.staffspf.org.uk Annual voting summary The Pensions Panel receives quarterly updates from managers on details of votes cast on corporate resolutions for holdings in their relevant portfolios. Below is a summary of their activity in 2011/2012. To see the managers quarterly voting summaries in full please contact the Treasury and Pension Fund team at: treasury.pensionfund@staffordshire.gov.uk or 01785 276330. Total Vote with Votes against Not Abstain resolutions management management voted MorganDRAFT JP Morgan 42,707 37,620 4,562 525 0 AberdeenDRAFT Standard Life 1,700 1,654 13 33 0 Aberdeen 623 556 27 10 30 Sarasin 1,109 573 170 36 330* Longview 526 472 53 1 0 State Street 9,052 8,722 255 75 0 * Due to restrictions on trading DRAFT Standard LifeDRAFT 16
I n v e s t m e n t r e p o r t Current issues Below is a small selection of issues that are were topical in the pensions industry during the year and created media headlines: The issue of high executive pay was a dominant one in the pensions industry during the year, with several recent high profile backlashes by shareholder groups against what have been perceived as over-generous settlements to management with no link to company performance. Hydraulic fracturing, a controversial method of gas extraction where water, sand and chemicals are injected into wells at high pressure to break open shale rock, has been attracting attention recently and pension funds, as long term investors in energy companies have been asked to apply pressure to make the process less environmentally damaging. Issues at News Corporation (owner of The News of The World) have been high profile throughout the year with many institutional investors voting against the re-election of the board at their AGM due to the failures associated with the phone hacking scandal. DRAFT 17
Page 1 and 2: Staffordshire Pension Fund Annual r
Page 3 and 4: Contents 2 3 9 18 27 53 55 Chairman
Page 5 and 6: F u n d m a n a g e m e n t Governa
Page 7 and 8: 7 F u n d m a n a g e m e n t Pensi
Page 9 and 10: F u n d m a n a g e m e n t Adminis
Page 11 and 12: I n v e s t m e n t r e p o r t DRA
Page 13 and 14: I n v e s t m e n t r e p o r t DRA
Page 15 and 16: I n v e s t m e n t r e p o r t Inv
Page 17: I n v e s t m e n t r e p o r t Inv
Page 21 and 22: F u n d m e m b e r s h i p Benefit
Page 23 and 24: F u n d m e m b e r s h i p aT New
Page 25 and 26: F u n d m e m b e r s h i p Benchma
Page 27 and 28: F u n d m e m b e r s h i p Custome
Page 29 and 30: Financial statements Staffordshire
Page 31 and 32: F i n a n c i a l s t a t e m e n t
Page 35 and 36: notesDRAFT DRAFT Assumptions The as
Page 37 and 38: Financial statements F i n a n c i
Page 55 and 56: G l o s s a r y Glossary of terms A
Page 57 and 58: C o n t a c t s If you have any que

Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

Create successful ePaper yourself

Delete template?

Save as template?