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Lifeyrissjodur Verzlunarmanna (Pension Fund of Commerce)

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.

Examples from LV's Shareholder Policy [LV = Lífeyrissjóður verzlunarmanna (the Pension Fund of Commerce)]

LV's role and emphasis in companies' corporate governance (ESG related bullets)

  • Earning a good, long­term return on its portfolio in a responsible manner is a key task of LV. 
  • The Fund makes it a priority that companies in which it invests follow sound business practices in their operations and exercise good corporate governance

LV's guidelines as an investor (ESG related bullets)

  • In daily operations of the company, (investing company funds,) the Board of Directors and management should be guided by the company's long-­term interests taking into account its stakeholders.
  • Voting rights are among the basic rights conveyed by a holding in a company. The principle of one share ­one vote is a priority. 
  • Emphasis is placed on having the company's Board of Directors and management make every effort to operate in accordance with law and showing appropriate regard for other stakeholders. 
  • Another priority is to have management ensure compliance with the rules and guidelines on environmental issues which apply to the activities concerned.
  • The Pension Fund of Commerce is a signatory of the UN Principles for Responsible Investment (UNPRI) 

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]

When evaluating investment proposals, an integral part of the Due Diligence process is to identify the ESG factors of that particular investment.  If the proposal includes outsourcing investment decisions (e.g. a mutual fund or PE) the DD focuses on the managers capabilities on ESG and to what extent those capabilities are leveraged unto underlying investments.

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.

URL/Attachment

URL/Attachment

Attachment


URL/Attachment

URL/Attachment

URL/Attachment

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.

In the pension funds Article of associations it is stated out that if members of the board or any in the management or investment staff has direct or indirect personal interest regarding an investment decisions, the person in question is not qualified to participate in the decision and will not participate in the investment process.  Similarily, the board members are not allowed to sit on the board of companies where LV has an ownership stake.

These issues are dealt with in more detail in the pension fund’s Code of Conduct and also referred to in the pension fund’s shareholder policy. 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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