Home > Uncategorized > DutchNews.nl – Doctors’ pension fund says tobacco investment is ‘up to manager’

DutchNews.nl – Doctors’ pension fund says tobacco investment is ‘up to manager’

DutchNews.nl – Doctors’ pension fund says tobacco investment is ‘up to manager’.

 

Abdication of responsibility by Doctor’s pension fund.

ASH and Fair Pensions issued this advice to UK funds:

It is common practice for pension funds to delegate day-to-day investment decision-making to external fund managers. However, this does not prevent them from instructing their fund managers in particular matters . Indeed, the law in the UK is quite clear that, although trustees may delegate their investment functions, they cannot delegate their fiduciary responsibilities.
Final responsibility for investment decision-making rests with the trustees themselves. The judge in Martin v City of Edinburgh stressed that trustees must “apply their minds separately and specifically to the question whether [the decision at hand] would be in the best interests of the beneficiaries.”

Moreover, in order to fulfil their fiduciary duties, the law requires trustees to monitor their fund managers on an ongoing basis. In other words, as FairPensions’ recent report concluded, “It is a vital principle of fiduciary obligation that fiduciaries cannot outsource their obligation to think.”

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