Letter by Larry Fink – BlackRock Chairman and CEO – to CEOs
In his annual letter to CEOs, Mr. Fink reflects on the belief that any company, either public or private, must have a sense of purpose to reach its full potential. He explains that, without such sense, the company will succumb to short-term pressure. He states that the time has come for a new model of shareholder engagement – one that strengthens and deepens communication between shareholders and the companies they own. Click here to read the letter.
Signatories to the Amec Code prepare for their first report
The 16 signatories to the Amec Stewardship Code are preparing to disclose the reports on their stewardship activities conducted during 2017. The Stewardship Code Implementation Working Group met in February and discussed the choices and strategies adopted by the signatories for this first cycle. It is interesting to see that each signatory is choosing a different approach, what shows the flexibility offered by the code.
The working group has agreed to schedule an extraordinary meeting for March, before the disclosure date, to debate about ultimate issues.
Amec and ABRAPP debate stewardship and self-regulation initiatives in the IBGC
On February 6, Mauro Rodrigues da Cunha and Luiz Ricardo Marcondes Martins, CEOs of Amec (the Brazilian Association of Capital Market Investors) and ABRAPP (the Brazilian Association of Pension Funds), respectively, addressed their organization’s efforts towards stewardship and the self-regulation of investment activities in the Brazilian Institute of Corporate Governance - IBGC.
ABRAPP CEO highlighted the importance of the industry, with approximately BRL 1 trillion in assets under management, for both the market and the country. He also pointed out that only a minority of pension funds are involved in the problems recently announced in the media. However, it is known that the large pension funds are mature and that the establishing of new funds would be welcomed. The system needs to reinvent itself.
The Self-regulation Code on investment activities is part of this context. By disseminating the best practices on a voluntary basis, it reinforces the sector’s quality and reputation. Martins also mentioned the certification of insurance professionals, which follows this same line.
Amec CEO highlighted the complementary nature of Amec’s and ABRAPP’s efforts towards the evolution of institutional investors. While ABRAPP’s code is focused on the selection and supervising of fund managers, Amec’s code is focused on the relationships among pension fund entities, contracted parties and invested companies, reason why the number of pension funds that are adhering to the Amec Code has been growing.
Click here for additional information about the event.
Amec CEO contributes to IBGC’s Cycle of Debates