Prepare for more shareholder activism, say institutions

More than three-quarters of global institutional investors think shareholder activism will increase in the next three years and become more prevalent worldwide.

This view was most strongly held by US institutional investors, found a survey of 500 institutions and sell-side research analysts by MSLGroup, a public relations firm.

However, the targets of shareholder activists vary between regions. In Europe, 62% of investors in the survey are concerned with aligning directors’ pay with corporate performance, compared with 42% in the US.

“Taken together with other findings in the report, it is becoming increasingly clear that while institutional investors around the world share certain characteristics and approaches, a one-size fits all approach to investor engagement is not optimal, as cultural and behavioural differences are becoming more transparent,” says MSLGroup global financial practice leader, Roland Klein.

The survey also uncovers differing attitudes to environmental, social and governance factors. Eighty-five per cent of Asian investors considered these to be a key factor determining a company’s valuation, a view shared by just 64% of US investors.

The most important non-financial factors across all investors in the survey were corporate strategy, quality of executive management and transparency of investor disclosures – each of which were chosen by more than 90% of respondents.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST