09/05/2011
By Matt Ritchie
The European Fund and Asset Management Association (EFAMA) has published reports on governance standards and responsible investment (RI), addressing what it considers to be key areas of the investment management industry.
The EFAMA Code for External Governance aims to provide a framework of high-level principles and best practice recommendations which will act as a catalyst for engagement between investment management companies and the companies in which they invest.
Announcing the publication of the reports, EFAMA said the governance principles sought to enhance the quality of communication with investee companies, and foster the creation of value to investors by dealing effectively with concerns over companies’ performance.
After analysing developments across member states, EFAMA concluded that there were a variety of approaches to responsible investing, and a variety of definitions of what constituted ‘responsible’. Therefore, EFAMA said the concept cannot be captured by a single regime but a variety of approaches must be allowed.
In its report, the Association said that when investment managers provide RI products, they should commit to an adequate amount of transparency so investors can evaluate and compare how products meet RI requirements.
Director general of EFAMA, Peter De Proft, said EFAMA recognises that corporate governance and responsible investment are both high on the European Commission’s agenda.
“I believe that the publication of the EFAMA Code for External Governance and the Report on Responsible Investment strongly illustrates the commitment of the investment management industry to play its constructive part in these important issues.”
Access the governance report here, and the responsible investment report here (pdfs)
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