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LGPS Central

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

LGPS Central Limited is committed to responsible investment (RI) and we have made it a core part of our investment process in every asset class and in every investment mandate we hold. Our approach to RI takes as its starting point the investment beliefs of the Company’s eight local authority pension fund clients and delivers against the clients’ RI and stewardship policies. We have designed an RI & Engagement Framework with two high-level aims; 1) to support investment objectives; 2) to be an exemplar for RI within the financial services industry, promote collaboration and raise standards across the marketplace. The framework makes clear that the term ‘responsible investment’ refers to the integration of financially material environmental, social and corporate governance (“ESG”) factors including climate change into investment processes. It has relevance both before and after the investment decision and is a core part of our fiduciary duty. Consequently, we apply RI both in the Selection process (before investment decision) and the Stewardship process (engagements with our investment value chain). We firmly believe that climate change poses a material risk to financial markets and diligently work with our value chain to reduce this risk.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Conflicts of interest, including those relating to matters of Responsible Investment, are managed according to the LGPS Central's Conflicts Policy, which is made available to all clients and is included in the Firm’s Policy Manual. Our Conflicts Policy is made available to all clients as part of the take on process and when it has been materially changed. The policy addresses the requirements of the Markets in Financial Instruments Directive (MiFID) which include the following action for the purposes of managing conflicts of interest:
a) firms must take all reasonable steps to identify and manage conflicts of interest between themselves and their clients, or between one client and another that arise in relation to the provision of investment and ancillary services
b) firms must maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps designed to prevent conflicts of interest from adversely affecting the interests of the client
c) where such measures are not sufficient to ensure, with reasonable confidence, that risks of damage to client interests will be prevented, the firm must clearly disclose the general nature/or sources of conflicts to the client before undertaking business on its behalf.

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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