Companies Act 2014 section 1110I

Investment strategy of institutional investors and arrangements with asset managers

Section 1110I requires relevant institutional investors to publicly disclose how their equity investment strategy aligns with their liabilities and to disclose details of their arrangements with asset managers.

• Institutional investors must publicly explain how the main elements of their equity investment strategy are consistent with the profile and duration of their liabilities, particularly long-term liabilities, and how those elements contribute to medium to long-term asset performance.
• Where an asset manager invests on behalf of an institutional investor, the investor must disclose how the arrangement incentivises alignment with the investor's liability profile, encourages long-term investment decisions and engagement with investee companies, and how the manager's evaluation and remuneration reflect long-term performance.
• If any required disclosure element is omitted, the institutional investor must publicly provide a clear and reasoned explanation for the omission.
• Public disclosure means making the information available free of charge on the relevant person's website and updating it annually unless there has been no material change.