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Pension Protection Fund

PRI reporting framework 2017

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities


Roles present in your organisation

          Chief Investment Officer
          Investment analysts - monitoring of ESG

Other description (1)

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

We have an independent Board which sets out our business strategy and plan, and develops and maintains the PPF's responsible investment policies. This is usually delegated to the Board's Investment Committee, but the Board does provide direct steer where issues are considered, for example on corporate governance priorities and on the consideration of ethical issues in our investments.

The Chief Investment Officer (CIO) is responsible for implementing the investment strategy which includes our responsible investment strategy. The responsible investment strategy is reviewed annually, with quarterly updates to the Investment Committee as required.

The PPF employs a dedicated team of experienced investment professionals. Team members have diverse backgrounds thereby mitigating the risk of "group think". Team members are encouraged to develop their skills within a particular area of investment field working on a range of investment projects.

The investment strategy is designed to be robust to changes in the capital market environment, and as part of this, our responsible investment strategy contributes to risk mitigation. The PPF seeks to utilise a diverse range of investment levers to ensure that the return per unit risk is maximised while respecting the long term targets set out in the Statement of Investment Principles.

Value is added through active manager selection, tactical asset allocation, portfolio construction and efficient implementation. A rigorous process is used to gather the data on which these decisions are based and proprietary systems are used to track the information.

The Team meets with investment managers at regular intervals and formally evaluates the managers' ability to deliver on their agreed performance targets. Managers are evaluated on various criteria: Organisational Stability, Calibre of Personnel, Investment Process, Alignment with PPF Responsible Investment Principles, Risk and Performance.

The day-to-day implementation of the strategy is in the hands of our Responsible Investment Manager, and RI activities are integrated into the investment process. Oversight is delegated to our Asset and Liability Committee (an executive committee). This includes the quarterly review of the Responsible Investment performance of our external investment managers.

Environmental, social and governance risks are included in the investment team's risk register which is reported to the Risk Management Committee.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

1 Number

07.4. Additional information. [Optional]

SG 08. RI in performance management, reward and/or personal development (Private)