Activist shareholders are staying active
A recently published article in the US News & World Report addresses the global trend towards not only a growth in the activities of activist investors, but also in the active posture among mainstream investors, most of them indexed investors, usually known as passive investors. Some of the world’s largest institutional investors have been playing a more active role in response to their growing stewardship demands.
“Passive investing should not be confused with passive ownership,” says Rob Berick, managing director at Falls Communications. “Non-traditional activists utilize activist strategies and are working with management teams to effect change.”
Click here to read the complete article.
Non-signatories are using the Amec Stewardship Code as a guide to their internal policies
Investment managers and pension funds that have not adhered to the Amec Stewardship Code yet have been consulting Amec and sending feedback about the code, showing that its content has been used to guide internal discussions on how to enhance their practices.
This trend reiterates the fact that the Amec Code has been bringing the best international practices about the topic to Brazil, and that it fulfills the association’s main goal with its launch, that is, to positively influence on the work developed by institutional investors in their role as owners of Brazilian companies’ securities.
Amec remains at the disposal of interested institutional investors to discuss the topic and recommends the Implementation Handbook (available here) as a tool for this process.
Academic article praises Stewardship Code initiatives
In an article to be published in the Seattle University Law Review, the professor Jennifer Hill highlights the rise of stewardship codes as a welcome development in the debate about the global corporate governance. “Outside the United States, however, a powerful alternative narrative (to the traditional activism) about the benefits of increased shareholder engagement in corporate governance has gained traction in many major jurisdictions.”
Click here to read the author’s review about the topic.
Click here to read the professor’s complete article.