31/05/2011
By Matt Ritchie
Lord Paul Myners has been appointed chair and partner of the UK operations of Cevian Capital, Europe’s largest active ownership fund manager.
Myners has had a long and successful career in fund management, and has been a leading voice in the call for greater engagement in the company/shareholder relationship.
Chair of Gartmore Investment Managers from 1987 to 2001, Lord Myners has held a number of company board directorships including chairmanship of Land Securities, Marks & Spencer and Guardian Media Group; vice-chairmanship of PowerGen; and directorships of Mm02, Orange plc, GLG, Bank of New York and NatWest.
In 2001, at the request of HM Treasury, Lord Myners led a review of institutional investment in the UK, and set-out 10 principles for best practice, popularly known as the “Myners Principles.”
Lord Myners said he has highlighted issues within the investment industry that have led to the proliferation of ownerless corporations for much of the last decade.
Issues include short-termism, overly-diversified portfolios, and a preference for investors to vote with their feet, rather than engage with companies.
Myners said he has held Cevian in high regard “for some time”, having come to know them from governance circles.
“Over the last months I have had an opportunity to get to know the firm and its professionals from the inside. Its investment strategy entails a long-term horizon, a concentrated portfolio, a plan to add value to each of its companies through constructive involvement, and collaborative efforts with and on behalf of other major shareholders. Cevian’s approach embodies many of the principles that I believe are important not only for successful investing, but for society to maximise economic value from its capital and corporate assets.”
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