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Mega Asset Owners Form Investor Stewardship Initiative

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A collective of institutional investors have formed the Investor Stewardship Group to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct.

“In markets around the world, there are well-established governance and stewardship codes. The Investor Stewardship Group’s goal is to codify the fundamentals of good corporate governance and establish baseline expectations for U.S. corporations and their institutional shareholders,” said Anne Sheehan, Director of Corporate Governance at the California State Teachers’ Retirement System (CalSTRS), in a press release. “The Group brings all types of investors together and enables us to speak with one voice on these fundamental issues.”

Founding Members
California State Teachers’ Retirement System BlackRock ValueAct Capital
RBC Global Asset Management State Street Global Advisors Wellington Management
Florida State Board of Adminstration Washington State Investment Board Vanguard
TIAA Investments MFS Investment Management  
Endorsers
GIC Private Limited PGGM MN
Legal & General Investment Management  

 

For more information: Go here

This institutional framework is targeted to go into action on January 1, 2018 to give U.S. companies time to adjust to its standards in advance of the 2018 proxy season.

STEWARDSHIP PRINCIPLES FOR INSTITUTIONAL INVESTORS

Principle A Institutional investors are accountable to those whose money they invest.
Principle B Institutional investors should demonstrate how they evaluate corporate governance factors with respect to the companies in which they invest.
Principle C Institutional investors should disclose, in general terms, how they manage potential conflicts of interest that may arise in their proxy voting and engagement activities.
Principle D Institutional investors are responsible for proxy voting decisions and should monitor the relevant activities and policies of third parties that advise them on those decisions.
Principle E Institutional investors should address and attempt to resolve differences with companies in a constructive and pragmatic manner.
Principle F Institutional investors should work together, where appropriate, to encourage the adoption and implementation of the Corporate Governance and Stewardship principles.

 

CORPORATE GOVERNANCE PRINCIPLES FOR U.S. LISTED COMPANIES

Principle 1 Boards are accountable to shareholders.

Principle 2 Shareholders should be entitled to voting rights in proportion to their economic interest.
Principle 3 Boards should be responsive to shareholders and be proactive in order to understand their perspectives.
Principle 4 Boards should have a strong, independent leadership structure.
Principle 5 Boards should adopt structures and practices that enhance their effectiveness.
Principle 6 Boards should develop management incentive structures that are aligned with the long-term strategy of the company.

 

RDIF and Makara Capital form Technology Company Investment Joint Venture

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The Russian Direct Investment Fund (RDIF) and Singapore-based Makara Capital, a specialist in transaction financing and asset management, signed a deal to form a US$ 200 million joint investment platform to finance breakthrough innovative projects in Russia and Asia. Ali Ijaz Ahmad, the CEO of Makara Capital, is a board director of the Intellectual Property Office of Singapore (IPOS). Ali Ijaz Ahmad served as an adviser to Morgan Stanley and The Carlyle Group. He also had stints at the World bank and Goldman Sachs. Makara Capital was founded in 2005 as a joint venture with Credit Suisse AG and made independent by its founding partners in 2008.

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SVB Financial Group to Acquire Leerink Holdings

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Linking Boston to the San Francisco Bay Area in the world of pharmaceuticals, SVB Financial Group (SVB) announced that it has entered into a merger agreement to acquire Leerink Holdings LLC, the Boston-based parent company of Leerink Partners LLC, an investment bank focused on the healthcare and life science industries. Jeffrey A. Leerink formed Leerink in 1995. Santa Clara, California-based SVB Financial Group is the parent company of Silicon Valley Bank. SVB is big into life sciences and provides services to many healthcare companies and startups.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Digital Currencies Gaining Steam Among Central Banks

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At the Singapore Fintech Festival, International Monetary Fund head Christine Lagarde noted that central banks should consider issuing digital currency, as non-cash payments increased over the years – especially in developed markets. Digital currencies, also known as cryptocurrencies, such as bitcoin have lost tremendous value in recent months. Lagarde is referring to having the central bank issue digital currencies. Lagarde argued that a digital currency would be the liability of the state and not a private company. Saudi Arabia, China, Canada, Sweden, and even Uruguay have tinkered with possibly having digital currencies or some form. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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