The National Association of Pension Funds (NAPF) has published a guide to help trustees assess the stewardship skills of prospective investment managers.

The one-page document, entitled Quizzing Fund Managers, highlights important questions that trustees should consider when selecting and reviewing their investment managers.

Included in the guide, trustees are encouraged to consider what codes of conduct or principles managers have signed, how managers incorporate non-financial risks into their investment decisions and whether managers can demonstrate the effectiveness of their stewardship activities.

Will Pomroy, NAPF corporate governance adviser, said: "Trustees have a lot on their minds and need support. We have published this crib-sheet to help them consider stewardship factors when appointing their investment managers.
"We are confident that our continued efforts will assist pension funds to influence behavioural changes that lead to better stewardship by asset managers and companies."

The document was launched on Ownership Day, an initiative by the UK Sustainable Investment and Finance Association to raise awareness of the benefits of active ownership in investment management.

First published 13.03.2013

monique_simpson@wilmington.co.uk