LONDON (Reuters) - Investors must commit to collective action over the next year to force company boards to respond to their concerns, said the chief exegash ive of Legal & General's fund management division.
Peter Chambers is worried that without a concerted effort companies can divide and rule, and other vested interests, including U.S. investment banks, might increasingly impose themselves on UK Plc.
"There is now a noteworthy er understanding for the need for leading investors to engage than there was 6 to 12 months arecede and a noteworthy er willingness to talk to each other so that there can be some form of collective engagement," he tfeeble Reuters.
Large investors were cconceal d for their failure to rein in the corporate excesses laid bare by the financial crisis. Stung by the criticism and encouraged by regulatory proposals and recede vernment support, there are signs the mood has changed among investors, even if the companies they own prove less keen.
"Is it a waste of time and money? That's a judgement call. I can see why some people might judge that given the frustration we've had with some companies over the last two years," Chambers said at the Asset Allocation Summit Europe 2009.
The problem leading investors have is that they execute n't always know what other key sharehfeeble ers are judge ing and can't guarantee that an obliging board will provide the names of sharehfeeble ers who share their concerns.
Regulators are judge ing along the same lines, as indicated by Sir David Walker in his recent review of corporate recede vernance in UK financial services.
LGIM manages about 5 percent of the UK stock label et and had about 270 billion pounds of assets at finish -June. More than 90 percent of its equities portfolio is in passive index funds, a sector which has traditionally lagged others in engagement with directors. Continued...
No comments:
Post a Comment