TPR ESG

Red Line VotingThe Association of Member Nominated Trustees (AMNT) published the Red Line Voting Policy to help pension funds become more active, engaged and responsible investors.

The Red Lines Voting Policy encompasses Environmental, Social and Governance (ESG) factors and includes 34 individual policy statements or ‘Red Lines’  (19 Governance, 10 Social and 5 Environmental).

Guidance from the UK’s Pension Regulator (TPR) requires that trustees should develop policies on stewardship and responsible investment. Red Line Voting guidance helps pension trustees meet these responsibilities. Red Line Voting can deepen their understanding of how the fund managers who are entrusted to manage their investments are addressing stewardship and voting and holding investee companies to account in respect of a range of ESG good practices.

Manifest has developed Red Line Monitor to enable AMNT members to implement Red Line Voting across their investment portfolios. Red Line Monitor equips trustees with detailed analyses of:

  • How the stewardship of their assets is being managed
  • How individual companies measure up to the Red Lines
  • How the portfolio overall measures up to the Red Lines

Company Profiles

Manifest prepares detailed background reports for each company focusing on Governance, Remuneration and Sustainability. Manifest’s independent analyses form the basis for the Red Line Voting Guidelines analysis.

Red Line Voting Guidelines

Each of the AMNT’s Red Line Voting Guideline has been added to the Manifest Custom Voting Template system.

Red Line Voting Guidelines can be applied across portfolios in order to determine which issues may be of potential concern at individual company level.  In the spirit of the AMNT’s Red Line Voting position paper, trustees can fine tune their customised voting policy as required.

The quality of company explanations is very important to the Red Lines as these allow asset owners and managers to work within the UK’s Comply or Explain framework.

Red Line Portfolio Review

Manifest provides a customised analysis of individual portfolios using the Red Line voting policy alerting Trustees where the Red Line issues are a priority.  The portfolio review can be used to assess existing portfolios or as a fund manager due diligence tool at the selection stage.

The Red Line Monitor service hence provides an easy to use, interactive, screening tool to understand how individual companies or sectors measure up to the Red Line guidance.

Fund Manager Vote Reporting

Where asset management or voting has been outsourced, Manifest provides a comprehensive audit and review of how fund managers have voted shares in comparison with the Red Line policy triggers.

Find out more about Red Line Monitor

To find out more about Red Line Monitor you can either email info@manifest.info, call + 44(0)1376 503500 or send an enquiry using the form below. We look forward to hearing from you.

 

 

Last Updated: 28 March 2017