In recent years, stewardship has shot into focus for fund managers. Despite today’s challenging and uncertain financial environment, effective stewardship has solidified into a longer-term priority, recognised as a crucial component of sustainable business. Since the UK’s adoption of a stewardship code in 2010, formalised sets of principles are now present in as many as 20 countries around the world*. These principles, or codes, encourage asset management firms to monitor and engage with the companies they invest in and disclose this information publicly.
But what does effective stewardship look like in practice? What were its original objectives, and has it achieved them? Critics have suggested that sets of principles are well-intentioned but ineffective; morally sound, but lacking any practical recommendations. Conversely, regulations that are perceived as too stringent risk turning good stewardship from a long-term direction of travel into a mechanical compliance exercise. What kind of revisions to stewardship codes are needed to ensure that the standards for corporate governance are evolving with the market? How can CIOs develop and promote workable solutions for effective oversight and better long term ownership? What responsibility should CIOs carry for translating regulation into wholesale culture shift, both internally and across the investment landscape?
Join the Financial Times and Societe Generale at this exclusive breakfast roundtable to discuss what is needed for stewardship to drive sustainable, long-term growth whilst delivering better returns for shareholders.
*‘UK stewardship code in line for significant overhaul’. Source: ft.com