The Society takes its responsibility as an investor seriously. In considering how to invest, we are careful to identify the Member benefits that we have to meet from our investments. We think about the type of benefits, when they might be due and how much is involved. We appoint professional investment managers to deal with the matters that require expertise, practical experience and infrastructure. We make sure that our arrangement with our chosen investment managers does not include any incentives that may lead to behaviour that is not in the Society’s best interests.
All of the Society’s assets are managed by LGT Wealth Management UK LLP (‘LGT’). We chose this firm following a competitive tender and a rigorous selection process, which considered a number of factors including the quality of stewardship.
We have considered LGT’s Stewardship Policy. We think that this policy describes appropriate shareholder engagement, as far as our investments are concerned.
In particular, the Stewardship Policy describes how LGT monitors investee companies on strategy, financial and non-financial performance and risk, capital structure, corporate governance and social and environmental impact. It describes how LGT, on behalf of clients like us, talks to investee companies, exercises voting and other rights that come with share ownership, cooperates with other shareholders, communicates with relevant stakeholders of the investee companies and manages conflicts of interest.
We have given LGT detailed instructions about how to manage our assets. LGT has no performance fee or other incentive. Its performance is considered regularly, including portfolio turnover costs. Our agreement is subject to three months’ notice.
Investment Performance Oversight
The Society's Risk Management Comittee is responsible for monitoring the performance of LGT. It ensures that the investment aims and objectives are met and that the manager is following the instructions provided.
If you have any question about this policy or how the Society discharges it's obligations, please contact us using our Contact Form.