The definition of stewardship proposed by the UK’s Financial Reporting Council (FRC) conflicts with asset managers’ and asset owners’ fiduciary duty, according to the country’s asset management trade body.
The Investment Association (IA) said the way the FRC defined stewardship in its updated Stewardship Code would “hinder rather than promote the development of an effective market for stewardship”.
The IA suggested that with “careful redrafting” this and a few other shortcomings could be rectified to allow the code to deliver on expectations.
In the draft 2019 stewardship code, stewardship is defined as “the responsible allocation and management of capital across the institutional investment community, to create sustainable value for beneficiaries, the economy and society”.
Investments & Pensions Europe | April 4, 2019
Institutional investors, index fund managers and proxy advisory firms applying ESG principles to investments came under scrutiny Tuesday during a hearing held by the Senate Committee on Banking, Housing and Urban Affairs.
Of particular concern to Committee Chairman Mike Crapo, R-Idaho, was how ESG shareholder proposals impact retail investors. He said that in the 2018 proxy season, ESG proposals were the largest category of shareholder proposals on proxy ballots, with 15% climate related and 14% related to political contributions. "It is important to understand how institutional investors are voting the shares of the money they manage to make sure that retail investors' interests are being reflected in these voting decisions," Mr. Crapo said at the hearing.
Pensions & Investments | April 2, 2019
SINGAPORE/SEOUL/HONG KONG -- Seth Fischer lives in hope.
For years, the founder and chief investment officer of Oasis Management has been putting pressure on Japanese companies to radically change the way they operate. His goals have been the same as those pioneered decades ago by "activist" investors in the U.S.: to shake up complacent boards, push companies to shed underperforming businesses and to make them more transparent about the way they operate.
Despite a few victories, however, the revolution inside Japan Inc. has never quite taken off. Yet Fischer insists that the change he has sought for so long is now at hand.
"I feel like, finally, we have much more opportunity to have influence over management," Fischer told the Nikkei Asian Review. "The management is much more open, sensitive and available to improve their governance to drive value for everybody. We are getting a lot more responses from management than ever before ... and not just words."
Nikkei Asia Review | April 3, 2019
Exxon Mobil Corp is not required to let its shareholders vote on setting greenhouse gas targets, the U.S. Securities and Exchange Commission said on Tuesday, agreeing with the company’s request to reject the proposal.
Exxon in late January asked the SEC for permission to bar a shareholder submission calling on the company to set emissions targets beginning next year that “aligned with the greenhouse gas reduction goals established by the Paris climate agreement.”
Exxon argued the resolution was misleading, substantially implemented and an attempt to interfere with its management responsibilities.
Reuters | April 2, 2019
Back to top