Corporate schemes must increase transparency and demand more responsible investing from their asset managers to keep pace with pension funds outside the UK, UKSIF says. The sustainable investment forum said private sector funds needed to make their statement of investment principles more freely available to the public and build environmental, social and governance issues into the awarding of mandates.
Compared with funds overseas, the UK needed to be more forward thinking, the organisation said.
UKSIF chief executive Penny Shepherd said: "Pension funds should be more transparent, demanding long term responsible investments from their asset managers
.
"This protects and grows value over the long term. Pension funds need to be generating value, not just over 30 months, but over 30 years. Transparency and demanding long term investing principles are central to achieving this."
UKSIF also revealed the Financial Reporting Council's corporate governance adviser Jocelyn Brown is set to join its Sustainable Pensions Advisory Board, which includes representatives from BT Pension Fund, the Association of British Insurers and National Association of Pension Funds.
UKSIF is also set to introduce a new membership category of "affiliate" for pension funds interested in joining the forum to get more information on responsible investing.
Shepherd said the introduction of a socially responsible investment fund for the National Employment Savings Trust would boost the level of interest across the industry.
"We would expect NEST to be a benchmark for the industry as a whole, for pension funds to look at what NEST is commissioning and consider whether they are doing as well as they are," she added.
UKSIF chief executive Penny Shepherd said: "Pension funds should be more transparent, demanding long term responsible investments from their asset managers
.
"This protects and grows value over the long term. Pension funds need to be generating value, not just over 30 months, but over 30 years. Transparency and demanding long term investing principles are central to achieving this."
UKSIF also revealed the Financial Reporting Council's corporate governance adviser Jocelyn Brown is set to join its Sustainable Pensions Advisory Board, which includes representatives from BT Pension Fund, the Association of British Insurers and National Association of Pension Funds.
UKSIF is also set to introduce a new membership category of "affiliate" for pension funds interested in joining the forum to get more information on responsible investing.
Shepherd said the introduction of a socially responsible investment fund for the National Employment Savings Trust would boost the level of interest across the industry.
"We would expect NEST to be a benchmark for the industry as a whole, for pension funds to look at what NEST is commissioning and consider whether they are doing as well as they are," she added.
Read more: http://www.professionalpensions.com
