Shareholder Rights

Governance Risk

Shareholder Rights

LAPFF believes that the shareholder rights of its member funds are fundamental to minimising portfolio risk, ensuring active stewardship and enhancing portfolio value
LAPFF believes that the shareholder rights of its member funds are fundamental to minimising portfolio risk, ensuring active stewardship and enhancing portfolio value

The voting rights attached to a pension fund’s share ownership need constant protection.

 

Whether it’s the ability to cast a vote at company annual meetings on approving the report and accounts; to approve executive pay schemes; the election of directors or supporting shareholder resolutions, the right to vote is a cornerstone of corporate governance principles in the UK.

 

Part of LAPFF’s work in this area has focussed on facilitating the exercise of voting rights in collective investment vehicles, or split fund voting. LAPFF is committed to enabling such voting rights and campaigns for their facilitation by asset managers and by the Financial Reporting Council.

 

In addition the Forum encourages public disclosure of asset manager voting records. Many pension fund members of the Forum still use asset managers to vote the fund’s proxy votes. Full disclosure of such voting outcomes is a basic part of the process of active stewardship by funds and LAPFF recommends that a best practice disclosure regime should be instituted by the FRC.

 

LAPFF is currently pursuing these voting rights on the back of published proposals for asset pooling under the Local Government Pension Scheme Investment Regulations of 2016.

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Shareholder Rights

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