Date: July 2026
Author: Dean Wetton Advisory (DWA)
At Dean Wetton Advisory (DWA), we believe that meaningful engagement with investment managers starts with clarity. Effective engagement requires clear goals, a collaborative approach and a credible plan of action if outcomes fall short. For many pension schemes, stewardship is not exercised directly. Instead, clients rely on their investment managers to vote and engage with issuers in a way that reflects the scheme’s beliefs and long-term objectives.
Articulating Clients Beliefs
That process begins by working closely with clients to help the m articulate their own investment beliefs, including their expectations on stewardship, ESG issues and voting. Once those beliefs are clearly defined, we share them with managers and explore the extent of alignment. This is not a box-ticking exercise. We:
- Examine the manager’s stated philosophy
- Challenge areas of difference
- Look for evidence that their approach is consistent with the principles the clients want reflected in practice
Assessing Manager Actions
Once a manager is implemented, we then collect and analyse the voting information managers produce to assess whether their actions remain consistent with the beliefs they have set out. Where we identify drift, we engage directly with the manager, asking them to explain the rationale behind specific decisions and to demonstrate whether any change in approach is justified. In some cases, what appears to be inconsistency may reflect nuance or additional context. In others, it may reveal a genuine divergence that needs to be addressed.
This is particularly important in pooled fund arrangements that most pension schemes invest in. Pension schemes often do not have the scale or control to direct voting decisions themselves. Clients must therefore decide at what point misalignment becomes significant enough to justify change.
Our preference, wherever possible, is to pursue a collaborative approach with managers. Managers may already be hearing similar feedback from other clients and may be more open to adapting their stance than clients initially expect.
Driving Change or Moving On
Where change is achievable, DWA works with managers and clients to shape a more suitable solution which may include adapting the product or moving towards an offering that better reflects client beliefs. We then agree a clear timeline for delivery and monitor progress against it.
Where meaningful change is not possible, we help clients identify an alternative manager with stronger alignment and support the transition process so that stewardship expectations remain embedded throughout.
In our view, effective engagement is not simply about raising concerns. It is about setting expectations, testing alignment, monitoring outcomes and being prepared to act when necessary.
To discuss how DWA can support your scheme’s stewardship and manager engagement approach, contact us on +44 20 3422 5000 or enquiry@deanwettonadvisory.com