The European Fund and Asset Management Association (Efama) has published a new Stewardship Code titled “Principles for asset managers’ monitoring of, voting in, engagement with investee companies” as a revised version of its 2011 Code of External Governance.
The Code is mean to help asset managers adopt best practices in respect of stewardship of the companies in which they invest on behalf of their own clients. Stewardship as defined by Efama includes the monitoring of, voting the shares of, and engaging with those companies.
Revising the earlier, 2011, Code has been done to bring the new Code in line with the Revised Shareholder Rights Directive, published in the Official Journal of the EU on 20 May 2017, and which member states have to implement by June 2019. The Code is designed to be used on a “comply or explain” basis, to ensure asset managers do their duty with regards to stewardship.
Fostering best practice among businesses and their management is intended to encourage the meeting of environmental, governance, human rights and social challenges, Efama said.
“Efama believes it is not only part of an asset manager’s fiduciary duty to protect and enhance clients’ assets, it also encourages long-term value creation and long-term sustainability.”
Efama represents 28 member organisations and 62 corporate members, and a European asset management industry AUM of over €15.6trn.
ESG issues were discussed at the InvestmentEurope Zurich ESG Forum, which took place on 12 April. Further details about the event and the topics covered by speakers can be found here: http://www.investmenteurope.net/past-event/zurich-esg-forum-2018/