UK institutional investment groups set up “mechanism for collective engagement”

Institutional Investor Committee sets up new high-powered Advisory Council

The Institutional Investor Committee, which comprises the UK’s pension, insurance and asset management trade bodies, has set up a new high-level committee with a remit to act as a “mechanism for collective engagement” with companies.
The new IIC Advisory Council will be chaired by IIC chief Douglas Ferrans, who also chairs the Investment Management Association (IMA), and will meet on an ad hoc basis.
Among the draft terms of reference for the council are for it “to provide a mechanism for collective engagement with companies where necessary”.
“The Council will ensure that the stewardship and corporate governance agenda is investor-led and will drive collective action on shareholder engagement,” said Ferrans.
It will also provide a channel to enable the institutional investment community to be consulted on various issues. The IIC itself aims to “present a single voice for the institutional investment industry”.The membership comprises some of the top figures in the institutional asset management industry.
They include: Alan Brown, Chief Investment Officer, Schroders; James Charrington, Chairman of BlackRock Europe, Middle East and Africa; Alain Dromer, Chief Executive, Aviva Investors; Roger Gray, CIO, Universities Superannuation Scheme; Richard Lacaille, Global CIO, State Street Global Advisors; Ray Martin, Chairman of the NAPF Investment Council and Vice President – Pensions at DeutschePost DHL; Michael McLintock, CEO, M&G; Keith Skeoch, CEO, Standard Life Investments.
The development comes as think tank Tomorrow’s Company has released a ‘stewardship manifesto’.

It calls on pension fund trustees to define stewardship policy in their statement of investment principles and for investment consultants to co-operate to generate stewardship rankings of asset managers. And it wants the Financial Reporting Council to strengthen the current Stewardship Code to show clients the stewardship content of each fund.