Universities Superannuation Scheme Limited is the corporate trustee of one of the largest private sector pension funds in the UK with assets exceeding £21 billion. It was established in 1974 to administer the principal pension scheme for academic and senior administrative staff in UK universities and other higher education and research institutions.
The proper corporate governance of companies in which USS invests is of importance. The Trustees have adopted the recommendations set out in the UK's Combined Code appended to the Financial Services Authority's listing rules. Although the broad principles apply generally to UK public companies, USS is actively engaged in encouraging improvements in global standards of corporate governance and will look to apply these policies to international investments where appropriate.
USS currently have investments with a market cap of US$300m in Hong Kong and have some concerns about the lack of transparency of governance issues in this market. We are therefore keen to support the HAMS proposal to establish an authoritative body to represent and advance minority shareholder's interests in Hong Kong listed companies as we feel this forum will assist in accelerating corporate governance reform. We would hope that its success in improving governance standards and awareness could be likened to the successful development of such organisations as PIRC in the UK and ISS in the USA.