As two large asset owners with a clear commitment to, and experience in, engagement and long term active ownership, Railways Pension Trustee Company Ltd (Railpen) and Universities Superannuation Scheme Ltd (USS) have pooled governance expertise and resources to convene a voting and engagement alliance.
The two pension funds have prepared a common policy on governance related matters.
However, each asset owner will cast their vote on an individual basis. The alliance will not provide voting advice on corporate actions, matters relating to a change of control or sensitive shareholder proposals at investee companies.
The alliance will generate letters to investee companies to advise of the rationale for not voting in alignment with management where appropriate.
It is hoped the alliance will provide an infrastructure for informed voting for other pension funds – domestic and overseas – in due course. The alliance may also work together to influence the governance agenda of UK plc by providing a pension fund perspective as an alternative to the messages conveyed by large money managers and investor representative bodies.
For 2010/2011, the alliance will cover companies in the FTSE All Share.