Pension funds agree ESG is vital to investment returns

Green energyThe vast majority of pension funds (93%) say that environmental and social governance (ESG) issues are linked to investment returns, a significant increase since 2013, when only 81% viewed the link. The Pensions and Lifetime Savings Association has released its annual survey which also found that there is near universal agreement that pension funds have stewardship responsibilities (98%). Although only around a third of respondents (37%) reported that stewardship was regularly discussed at trustee meetings, this figure is significantly up from 2012, (17%). Over two thirds (68%) of pension fund respondents said they set out stewardship responsibilities in their mandates to investment managers – up from 51% in 2014 and a marked increase from just 38% in 2013. Luke Hildyard, policy lead, stewardship and corporate governance at Pensions and Lifetime Savings Association, says: “The near universal levels of recognition of the importance of stewardship and the widespread acceptance of the principles of ESG are encouraging.” Sixty UK pension funds were surveyed for the report. ©2015 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.