ISC principles on the responsibilities on institutional shareholders and agents
ISC principles on the responsibilities on institutional shareholders and agents
In October 2002 the Institutional Shareholders Committee, which brings together bodies like the NAPF, ABI and the Investment Managers Association, published a set of guidelines on shareholder activism. The general thrust of these principles is that investors should be transparent about when and how they will engage with investee companies, and that they should report clearly and regularly to clients on such activity. It was intended that these principles be written into mandate agreements between fund managers and pension funds, although it is not clear that is widespread.
The TUC is concerned that the ISC guidelines should have an impact and that institutional investors do take their responsibilities as owners seriously. As such trustees may wish to familiarise themselves with the ISC code. In the longer term you may wish to ask your fund managers how they intend to adhere to it. You should also seek to establish whether the ISC principles are written into mandate agreements or into your scheme’s Statement of Investment Principles.
The ISC is committed to reviewing the impact of the principles after two years (ie at the end of 2004).
You can view and download the ISC principles here: http://www.investmentuk.org/press/2002/20021021-01.pdf
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