The UK Asset Owner Roundtable is set to convene a meeting of major fund managers, following concerns over a perceived misalignment between owners’ long-term interests and how investment managers are exercising proxy voting at key AGMs of oil and gas majors.

UK Asset Owner Roundtable chair and Brunel Pension Partnership chief responsible investment officer, Faith Ward, suggested that the meeting would used to encourage a constructive dialogue to ensure asset owners needs are effectively understood by managers.

Brunel Pension Partnership revealed that the letter was written after concerns were raised by several members of the UK Asset Owner Roundtable, including, Scottish Widows and the Church of England Pensions Board, as well as Brunel Pension Partnership itself.

In particular, these concerns focused around a perceived misalignment between asset owners' long-term interests and how investment managers are exercising proxy voting at key annual general meetings of European oil and gas majors.

In the letter, Ward stated: “UK asset owners are concerned that despite unequivocal warnings from the United Nations and the IPCC of the risks of delayed action on climate change, that short-term interests are trumping long-term interests of pension funds.

“Delayed action on climate increases the chances of a disorderly climate transition and missing the goals of the Paris Agreement. This in turn increases the risks to pension funds long-term interests and the ability of those funds to serve the interests of their members/beneficiaries.”

Given this, Ward also confirmed plans to commission an academic review of the way significant asset managers have interpreted their clients’ long-term interests in the exercise of their stewardship duties, with a particular focus on how managers have voted at key AGMs in Europe.

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