Investment relationships for sustainable value creation: Alignment between asset owners and investment managers

Investment stewardship is essential for getting better returns for the millions of people in the UK saving for their retirement, but getting good stewardship to work consistently needs clarity and alignment between asset owners and investment managers.

Investment relationships for sustainable value creation: Alignment between asset owners and investment managers sets out several stewardship recommendations for each stage of the relationship between investment managers and asset owners, from the appointment process to ongoing monitoring, to help deliver better returns for savers.

This report deals with issues such as lack of clarity on stewardship expectations, overemphasis on short-term performance, and not taking enough account of the stewardship outcomes which risk undermining longer-term sustainable growth.

Investment relationships for sustainable value creation: Alignment between asset owners and investment managers was drafted by the steering group of investment managers, pension funds, investment consultants and lawyers established jointly by the Investment Association (IA) and Pensions and Lifetime Savings Association (PLSA).