Pension funds surveyed by the National Association of Pension Funds (NAPF) are working more closely with the companies they invest in to actively promote corporate governance.

More than three quarters of these funds have helped change remuneration packages, board membership or corporate strategy, and eight out of ten funds believe governance standards are continuing to improve.

Furthermore, two-thirds of funds have incorporated into their managers’ contracts the Institutional Shareholders’ Committee’s statement of principles on institutional investors’ responsibilities.

Joanne Segars, NAPF chief executive, said: “Pension funds and their investment managers have not been shy about raising corporate governance concerns with company management and their constructive approach is getting results. While no one should be complacent, pension funds believe governance standards in the UK are continuing to improve”.