The stewardship code

The FCA policy statement (19/13) was published on 31 May 2019, which brings in new requirements to develop and publicly disclose a policy on improved shareholder engagement and increased transparency around stewardship.

We are currently reviewing our stewardship and engagement activity in line with the policy statement and will make further disclosures in due course.

Stewardship aims to promote the long term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and the economy as a whole. (UK Stewardship Code, FRC, September 2012).

We expect stewardship programs to have an impact. This is demonstrated through strong engagement, thought leadership and voting. Please view the regular voting reports which are linked to below to learn more.

We ask all out to our fund managers to comply with the UK Stewardship Code

The stewardship code

What is the stewardship code

The UK Stewardship Code is a set of principles and guidance for companies like us who are responsible for the funds our customers invest in. The Code represents current best practice on how we should perform our stewardship duties.

The purpose of the Code is to improve the quality of engagement between large investors, such as fund managers, to help improve long-term returns and the efficient exercise of governance responsibilities.

At its simplest, stewardship is the responsibility to take care of something in one’s keeping. In this case, it involves the effort and activities undertaken by the fund managers we appoint to manage our customers’ money to monitor, engage and intervene on matters that may affect the long term value of companies and the capital invested in them. This can include corporate strategy, performance, corporate governance, environmental and social issues that may materially affect the future sustainability of companies.

What are 7 principles under the Stewardship Code?

Institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities.

Institutional investors should have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed.

Institutional investors should monitor their investee companies.

Institutional investors should establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value.

Institutional investors should be willing to act collectively with other investors where appropriate.

Institutional investors should have a clear policy on voting and disclosure of voting activity.

Institutional investors should report periodically on their stewardship and voting activities.

Approach to responsible investing

Explore our approach to responsible investing.