Stewardship News

BlackRock is the new signatory to the Amec Stewardship Code 
The group of signatories to the Amec Stewardship Code has a new member: BlackRock, the world’s largest fund manager with approximately $ 4.7 trillion USD in assets under management. With the adherence of the asset company, which is also Amec’s member, the group of signatories to the Stewardship Code now has 18 members.
“BlackRock’s focus, as a fiduciary investor, is on engaging companies to encourage them to adopt practices that support the generation of the long-term sustainable financial returns on which our clients depend to meet their financial goals. We are honored to play this role in Brazil,” said Ray Cameron, Head of Investment Stewardship – The Americas of BlackRock. Will Landers, Head of Latin American Fundamental Active Equities, reminded the fund manager’s pioneering initiative among its international peers of joining the group of Amec’s members and reinforcing its commitment to its clients. “Now, more than ever, we need to be attentive to our fiduciary duties. As one of the largest investors in the Brazilian securities market, we are very pleased to show our commitment to our clients by adhering to the Code.”
Stewardship evolves in India
In a letter sent to its clients, IiAS, a leading proxy advisory firm in the Indian market, addressed the latest developments observed during the last season of general shareholders’ meetings. According to the firm, some 35% of the country’s listed companies are held by institutional investors and virtually all of them participated in their invested companies’ meetings. In other words, institutional investors voted in practically 100% of their companies.
This scenario results from important factors. The first one is related to changes to the proxy voting rules, which ensure that all votes are effectively counted. Simultaneously, the IRDA (the Insurance Regulatory and Development Authority), the PFRDA (the Pension Fund Regulatory and Development Authority) and SEBI (the Securities and Exchange Board) created regulatory incentives to improve stewardship practices. Another factor highlighted by the IiAS is the growing participation of institutional investors in Indian companies.
Lastly, it is also a result of the development of a network of service providers that has been carefully examining the boards’ proposals. IiAS, for example, checked voting proposals of 704 shareholders’ meetings of Indian listed companies. Several proposals were rejected or faced strong opposition, mainly in the executive compensation sphere.
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