U.K. pension funds with a collective £125 billion ($174 billion) in assets called on other asset owners Monday to commit to improving diversity among their fund managers.
The call to sign the Asset Owner Diversity Charter came from a working group of large U.K. pension funds that includes the £30 billion Brunel Pension Partnership, Bristol; £17 billion defined contribution multiemployer plan National Employment Savings Trust, London; £32 billion RPMI Railpen, London; £15.7 billion West Midlands Pension Fund, Wolverhampton, England; £8 billion Lothian Pension Fund, Edinburgh, Scotland; and £8.7 billion pension pool London CIV.
Signatories commit to considering fund managers' diversity and inclusion records when choosing new partners, with diversity questions part of overall assessment scores, "meaning fund managers wanting to work with these clients will have to disclose information and demonstrate real devotion on how they are tackling diversity and inclusion within their workforce," the group said in a news release.
Signing the pledge also commits asset owners to include diversity as part of ongoing manager monitoring, with an annual questionnaire to be completed by managers.
The questionnaire asks managers to address diversity and inclusion in five key areas:
- Industry perception.