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The Trustee believes that good stewardship and positive engagement can lead to improved governance and better risk-adjusted investor returns. The Trustee delegates the exercise of the rights (including voting rights) attaching to the Scheme’s investments.
The Trustee has taken into consideration the UK Stewardship Code, and the investment managers all have stated corporate governance policies which comply with many or all of these principles.
In selecting and reviewing their investment managers, where appropriate, the Trustee will consider the investment managers’ policies on engagement (including exercise of voting rights) and how these policies have been implemented.
The Trustee does not consider any non- financial matters, such as members’ ethical views, when constructing the investment strategy and/or when selecting or reviewing fund managers.
11.
Incentivisation of Investment Managers
The Scheme’s investment managers are remunerated by fees related to the market value of the assets under management.
The investment managers are selected so that, in aggregate, the portfolio’s returns are expected to allow the Trustee’s investment objectives to be met.
The investment managers are not directly incentivised to align the approach they adopt with any non-financial policies or objectives set by the Trustee.
The Trustee does not directly incentivise the investment managers to engage with issuers of equity or debt to improve their financial or non-financial performance. The Trustee expects engagement to be undertaken as appropriate and necessary to meet the objectives of the mandates given to investment managers.
12.
Capital Structure of Investee Companies
Responsibility for monitoring the make-up and development of the capital structure of investee companies is delegated to the investment managers. The Trustee expects the extent to which the investment managers monitor these capital structures to be appropriate to the nature of the relevant mandate.
13.
Duration of Appointment for Investment Manager Appointments
The performance of the Scheme’s investment managers and mandates is assessed over a mixture of shorter and longer term time horizons. Ultimately, the Trustee assesses manager performance over a period appropriate to the specific aims of the relevant mandate, and in the context of its intended role within the Trustee ’ s wider strategy.
The Trustee does not specify any predetermined duration of appointment with the Scheme’s current investment managers.
Each of the existing mandates is open-ended in nature and therefore does not have a specified maturity.
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