More than seven out of ten respondents (71%) took stewardship activities and policies of asset managers into account when selecting them, according to research by the National Association of Pension Funds (NAPF).

The NAPF Annual engagement survey found that the number of respondents considering stewardship activities increased from 48% in 2011 to 71% in 2012.

It also found that 90% of respondents said they have reviewed their asset managers’ application of the stewardship policy.

The report also found:

  • 38% of respondents who are investment consultants have proactively raised the issue of stewardship with pension funds.
  • 45% recommended funds sign up to the Stewardship Code, which was launched in 2010 by the Financial Reporting Council.

Joanne Segars, chief executive at the NAPF, said: “We are particularly encouraged that more pensions funds are considering the stewardship activities and policies of asset managers before appointing them, and that they are monitoring their manager’s application of their stewardship policy. This is significant progress, but clearly more needs to be done.

“As key intermediaries between pension funds and asset managers, investment consultants could do more to encourage the take-up of the code by explaining its relevance to their pension fund clients.”

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