Large funds increase engagement and impact

The National Association of Pension Funds (NAPF) Engagement Survey 2008 shows that large UK pension funds (with over £1 billion in assets) are increasing their influence on the companies they invest in.

Some of the main findings are:

Board Membership: 74% of pension funds had seen changes to board membership as a result of their engagement activities - up from 67% in 2007.

Company strategy: 69% saw changes to company strategy - up from 57% in 2007

Remuneration Policy: 79% of respondents saw changes to remuneration policy - up from 74% in 2007

Social/Environmental policy: 68% of funds reported making an impact on social/environmental policy - up from 51% in 2007

Pension funds hold 13% of UK shares and the NAPF's annual survey figures show that, on average, 25% of pension fund assets are invested in UK equities.

Launching the survey, David Paterson, NAPF Head of Corporate Governance, said: "Large pension funds, as major institutional shareholders, are clearly making their voices heard in UK companies. We believe that high standards of corporate governance contribute to the long term success of a business and thus help generate the good investment returns which are essential for the health of pension funds."