Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
- References
11 - Investment governance of defined benefit pension funds
Published online by Cambridge University Press: 05 July 2011
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
- References
Summary
Introduction
In institutional funds generally and defined benefit pension funds specifically, investment ‘governance’ describes the system of decision-making and oversight that is used to invest the assets of a fund. The responsibility for this investment role lies with trustees or other types of fiduciaries who are faced with high-level investment decisions (where they will typically take full responsibility) and more detailed implementation actions (where delegating to others is more likely to be used and the fiduciaries’ role becomes one of framing the delegations and monitoring the actions of the delegated agents).
Investment governance, therefore, employs skills, resources and processes with the purpose of creating value for institutional funds.
There is a distinction between the inherited structure of investment institutions — normally framed by statute, property rights and covenants — framed by the rules and processes that sustain their performance.
- Type
- Chapter
- Information
- Good Governance for Pension Schemes , pp. 173 - 186Publisher: Cambridge University PressPrint publication year: 2011