UK - NAPF CONFERENCE - Standard Life Investments is set to build activism and governance into its global investment processes.
Speaking at the investment conference, Guy Jubb (pictured), head of corporate governance, Standard Life Investments (SLI) told delegates that the changes in the international landscape had encouraged the company to widen its approach.
“I am pleased to announce today that SLI is this year launching a global corporate governance platform, which will involve our portfolio managers, not just in Edinburgh but in Hong Kong, Boston and Montreal.
“We shall be raising our global game. The trend towards specialist mandates makes this a win-win proposition,” he said.
Jubb explained that pension fund deficits had sharpened attitudes to activism and as a result investment mandates were shifting away from relative performance to absolute performance and away from balanced to specialist mandates.
The liberalisation of global capital flows had also caused governance gurus to look beyond their national boundaries, he said.
“These two developments have particular relevance for activism, especially in a global context. It exposed economies, notably Japan and Europe where shareholders have been inactive. The returns in capital in the economies have been abysmal – not least because nobody in the governance chain was actively seeking improvements.
“As fund managers, we must take a similar activism approach for, say, Pacific Basin and North American portfolios as we do for our UK portfolios. Only by demonstrating that we have the capability to take an active stance on a global basis will we be able to win specialist investment mandates and enhance the value of client’s investments,” Jubb added.
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