Principles of ownership steering

In general

The unequivocal aim of the investment activities carried out by the Seafarers’ Pension Fund is to safeguard the payment of earnings-related pensions to seafarers as stipulated by law. The Seafarers’ Pension Fund aims at getting a good and stable return on its investments.  The Seafarers’ Pension Fund is engaged in responsible investment activities and complies, in this respect, with appropriate ownership steering.

The most important decisions with regard to ownership steering as conducted by the Seafarers’ Pension Fund involve the responsible investment of its assets. In order to reduce the risk, the investment activities of the Seafarers’ Pension Fund have been diversified into different objects of investment, and this requires commitment to the principles of responsible investing from the asset managers. 

Guidance of activities

The Seafarers’ Pension Fund monitors the realisation of its investments both directly and on the basis of reports received from the asset managers.  As a principle, the Seafarers’ Pension Fund is only a minor shareholder in different companies. To the extent possible, the Seafarers’ Pension Fund participates in events for investors and annual general meetings arranged by companies.

The Seafarers’ Pension Fund manages its equity assets through direct equity investments on its own and through asset managers that comply with the principles of responsible investment activities. The Board members and senior management of the Seafarers’ Pension Fund do not participate in the work of the boards of directors or supervisory boards of these asset management companies.

The Seafarers’ Pension Fund keeps the percentages of its potential shareholding in other companies (excl. its own direct real estate investments and holding companies established for real estate investment activities) under 20 per cent, unless the company concerned is closely associated with the actual operations of the Fund.  

The Seafarers’ Pension Fund may own property and housing companies as well as companies directly serving its property operations and in which the Fund exercises direct authority.

The Seafarers’ Pension Fund can be a significant investor, in accordance with its investment plan, in investment funds and private equity companies, and the representatives of the Fund can, if necessary, participate in the work of their expert bodies. 

The Seafarers’ Pension Fund can invest in profitable investments that support the reduction of disability risk concerning seafarers. The Seafarers’ Pension Fund can nominate representatives for such companies.

Involvement within ownership steering

In terms of ownership steering, the Seafarers’ Pension Fund endeavours to ensure that, as a minority shareholder, it is treated equally, transparently and responsibly with regard to other shareholders. If the Seafarers’ Pension Fund views it as necessary to participate actively in the administration of a company, the Fund will seek to influence the company through appointments to its board of directors.

The key task of the company’s Board of Directors is to determine a capital structure that corresponds to the targets and strategy of the company as well as to determine the guidelines for the distribution of its assets. The Annual General Meeting decides, based on the proposal of the Board of Directors, on the payment of dividends and acquisition of its own shares. The Seafarers’ Pension Fund requires that the policies for the capital structure and payment of dividends be clearly communicated to shareholders at the Annual General Meeting. The Seafarers’ Pension Fund prefers the payment of dividends to the repurchasing of its own shares. The Seafarers’ Pension Fund requires that companies in which it has holdings must comply with international norms and agreements in their activities.

The participation of the CEO and substitute for the CEO in boards of directors or supervisory boards of the companies is decided on by the Chair of the Fund’s Board of Directors. The participation of another person belonging to the Executive Group in a company’s board of directors is decided by the Chair of the Fund’s Board of Directors in accordance with the proposal of the CEO. The CEO shall make the decision as it concerns other personnel. 

When making a decision to participate in the work of a board of directors or supervisory board, the potential conflicts of interest of representation and its implications for the decision-making of the Fund’s investment activities shall be assessed. In the event of a conflict of interest, representation shall not be accepted and the right to participate shall not be granted.  

The Seafarers’ Pension Fund publishes the positions of trust held by the Board of Directors and senior management in other companies.

Representation in other companies

The Board members and senior management of the Seafarers’ Pension Fund have the following representations in other companies.

Representations in other companies, the Board members

Representations in other companies, senior management