ITEM PF12 - ANNEX 1
PENSION FUND COMMITTEE – 24 MAY 2002THE MYNERS
REVIEW ON INSTITUTIONAL INVESTMENT IN THE UNITED KINGDOM
|
1. Effective decision-making |
Comply |
|
Define who takes investment decisions |
Yes |
|
Consider whether members have sufficient skills |
Partly |
|
Determine whether appropriate training is being provided |
Partly |
|
Assess whether in-house staffing support is sufficient |
Yes |
|
Establish an investment committee with suitable terms of reference |
Yes |
|
Draw up a business plan |
Partly |
2.Clear objectives |
Comply |
|
Set overall investment objectives specific only to the fund’s liabilities |
Yes |
|
Determine parameters for employer contributions |
Yes |
|
Specify attitude to risk and limits |
Yes |
|
Identify performance expectations and timing of evaluation |
Yes |
|
Peer group benchmark in use for comparison purposes only |
Yes |
3. Focus on asset allocation |
Comply |
|
Priority is given to strategic asset allocation decisions |
Yes |
|
All asset classes permitted within the regulations have been considered |
Yes |
|
Asset allocation is compatible with liabilities and diversification requirements |
Yes |
4. Expert advice |
Comply |
|
Separate contracts in place for actuarial services and investment advice |
No |
|
Terms of reference specified |
No |
|
Specify role of S151 officer in relation to advisers |
Yes |
|
Tender procedures followed without cost constraint factor |
Yes |
5. Explicit mandates |
Comply |
|
Written mandate in management contract containing elements specified |
Partly |
|
Constraints on the types of investment are in line with regulations |
Partly |
|
Reasons stated if soft commissions permitted |
No |
6. Activism |
Comply |
|
Incorporate US Principles on activism into mandates |
No |
|
Engage external voting agencies if appropriate |
Yes |
|
Review manager strategies |
No |
|
Establish means to measure effectiveness |
No |
7. Appropriate benchmarks |
Comply |
|
Consider whether index benchmarks selected are appropriate |
Yes |
|
Limits on divergence from index are relevant |
Partly |
|
Active or passive management considered |
Partly |
|
Targets and risk controls reflect performance expectations |
Partly |
8. Performance measurement |
Comply |
|
Formal structure for regular monitoring in operation |
Yes |
|
Arrangements in place to assess procedures and decisions of members |
Yes |
|
Similar arrangements established for advisers and managers |
No |
9. Transparency |
Comply |
|
SIP updated as specified |
No |
|
Consultation undertaken on amendments |
No |
|
Changes notified to stakeholders |
Partly |
10. Regular reporting |
Comply |
|
Publish changes to SIP and its availability |
Partly |
|
Identify monitoring information to report |
Partly |
|
Inform scheme members of key monitoring data and compliance with principles |
Partly |