3. Voting
The Scheme’s equity investments are held through pooled funds. The investment managers of these funds vote on behalf of the Trustee.
undertaken on behalf of the Trustee
The Trustee has not, to date, set specific stewardship priorities for the investment managers on the basis that it is comfortable with the general approach adopted by the managers. Given this, and the fact that the Trustee delegates responsibility for carrying out voting activities to the managers, the Trustee does not take an explicit view on which votes undertaken on behalf of the Scheme are more significant than others. The table below provides a summary of the voting activity undertaken by each manager during the year, together with information on their key voting priorities and information on the use of proxy voting advisors. On the grounds of materiality, voting undertaken in respect of any listed property vehicles held through secure income funds have not been disclosed.
Fund
Does the manager use a proxy voting advisor?
Key voting priorities
% of votes cast as a proportion of total possible votes
LGIM index-tracking equity funds
99%
A proxy voting advisor (ISS) is used by LGIM, but LGIM actively direct a significant proportion of clients’ voting rights.
Improving corporate management of environmental, social and governance issues, including board remuneration and diversity.
Ruffer Absolute Return Fund
100%
A proxy voting advisor (ISS) is used by Ruffer, but Ruffer actively direct a significant proportion of clients’ voting rights.
Improving corporate management of environmental, social and governance issues, including board remuneration.
BlackRock Dynamic Diversified Growth Fund
94%
BlackRock’s proxy voting process is managed by the BlackRock Investment Stewardship team (BIS).
Board quality, environmental risks and opportunities, corporate strategy and capital allocation, compensation that promotes a longer-term view, human capital management.
Examples of votes flagged as being significant by LGIM, Ruffer and BlackRock have been provided in Appendix 1 . Examples of engagement activities undertaken on behalf of the Scheme are given in Appendix 2 .
Further details of the voting activities of the Scheme’s main equity manager, LGIM, can be viewed via this link: https://www.lgim.com/uk/en/capabilities/investment-stewardship/
Additional information on the investment managers’ voting activities can be provided to members on request.
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UTC (UK) Pension Scheme | Statement of Investment Principles - Implementation Statement | 5 March 2025
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