The NAPF has published the outcome of its review of the Myners principles for institutional investment. The report notes that compliance with the ten principles has improved over the six years since the original report. NAPF recommends that a voluntary approach for trustees is still the best solution. It suggests that the current principles should be consolidated into six:

  • Effective decision making - decisions taken by those with the necessary skills
  • Clear objectives - determined by reference to each scheme's liabilities, strength of employer covenant and attitude to risk
  • Risk and liabilities - scheme specific
  • Performance assessment - trustees should arrange formal assessment of fund managers and advisers
  • Responsible ownership - trustees should adopt the "ISC Statement of Principles on shareholder engagement" June 2007 edition
  • Transparency and reporting - trustees should report to members on investment management performance and explain any departure from the six principles

There are seven other recommendations: 

  • Additional "comply or explain" requirements to reinforce the voluntary approach
  • Additional guidance and trustee education 
  • Further work on implementation by smaller schemes
  • The Regulator should develop further guidance for DC schemes
  • Responsibility for overseeing the principles should be passed to Regulator 
  • Trustees of schemes in excess of £250m should undertake periodic reviews of performance
  • Further review in three years time

The Government's response to the review is awaited