Norway’s oil fund sees benefits in activism
In an interview to The Financial Times, Yngve Slyngstad, the CEO of Norges Bank Investment Management that manages the fund, explained that the strategy to disclose voting intentions ahead of the general shareholders’ meetings is proving to be more effective than expected.
Slyngstad explains that from the moment they started the process of notifying companies about the fund managers’ intention of declaring voting intentions in advance, companies became more willing to talk and compromise.
BNDESPAR adheres to AMEC Stewardship Code
The Code was an answer to the 2008 global financial crisis and comprises principles and duties of institutional investors.
BNDESPAR Participações SA has signed the adhesion term to the Amec Stewardship Code, aligning itself with the most advanced international corporate governance practices for institutional financial investors. The Stewardship Codes are adopted by the main financial markets worldwide, totaling more than 20 countries with similar initiatives, among them the United Kingdom, Japan, Canada, Italy, Australia and Switzerland.
The Stewardship Codes comprise principles and duties of diligent investment for institutional investors. They were created as of 2010 in response to the passive attitude and conflict of interests of several investors before the 2008 global financial crisis.
In Brazil, Stewardship initiatives are sponsored by AMEC – The Association of Capital Markets Investors. AMEC was founded in 2006 to defend the rights of minority shareholders and promote the development of the Brazilian stock market. Today AMEC gathers 59 foreign and domestic institutional investors, including BNDESPAR, responsible for approximately BRL 400 billion in assets in the Brazilian stock market under management.
The AMEC Stewardship Code is a set of principles and guidelines aimed to drive the engagement and transparency of institutional investors in the definition and performance of their shareholders’ responsibilities in invested companies. Additionally, it is focused on clarifying expectations and the basic governance responsibilities among investors so that they can improve the quality of their dialogues with the companies and contribute to their good performance in the long term. It also provides investors with a mechanism to communicate their priorities more objectively and report them to their clients and stakeholders.
The Stewardship Program of BNDESPAR and its respective policies – which will be developed and implemented based on the principles and duties of the AMEC Stewardship Code by 2021 – will be focused on strengthening the following attributes: transparency; accountability; engagement in discussing issues relevant to the capital market; exercising of voting rights; collaboration with other investors; and leadership for the development of good social and environmental practices and governance by the invested companies, among others.