The Australian Asset Owner Stewardship Code was developed by the Australian Council of Superannuation Investors (ACSI) in consultation with its members and other stakeholders. The Code aims to increase the transparency and accountability of stewardship activities in Australia. Stewardship activities include exercising voting rights, company engagement, monitoring asset managers and financial system advocacy.
ACSI CEO Louise Davidson said, “There is a growing desire for information about how asset owners manage the money entrusted to them. The Code raises the bar on signatories to proactively manage and disclose their stewardship activities. Beneficiaries and other stakeholders will find it easier to understand and assess the focus that asset owners have on good stewardship”.
Stewardship codes exist in many markets in the world, including the United Kingdom, United States, Japan, Hong Kong and South Africa. However, this is the first stewardship code to focus exclusively on the activities of Australian asset owners. The Code is open to all asset owners (including super funds, endowments and sovereign wealth funds), not just ACSI members.
The Code sets out six principles which signatories must commit to on an ‘if not, why not’ basis:
1. Publicly disclose how they approach their stewardship responsibilities.
2. Publicly disclose their policy for voting at company meetings and voting activity.
3. Engage with companies either directly, indirectly (for example, via collective action or third-party providers) or both.
4. Monitor asset managers’ stewardship activities.
5. Encourage better alignment of the operation of the financial system and regulatory policy with the financial interests of long-term investors.
6. Report to beneficiaries about their stewardship activities.
Signatories will be required to publish a Stewardship Statement which describes how they apply these principles. ACSI will maintain a list of signatories on our website, including a link to their Stewardship Statement and contact details.
Davidson is encouraging all asset owners to demonstrate their commitment to good stewardship by becoming signatories. She said “Australian asset owners have a long history of engaging with companies and voting their shareholdings to protect and enhance long-term value for their beneficiaries. “Signing up is an opportunity for asset owners to demonstrate that their intentions are backed by meaningful action. This is a strong basis from which to build trust and to set the tone for stewardship in Australia.”
Professor Ian Ramsay from the University of Melbourne will launch the Code in front of more than 250 conference delegates, including representatives from investors, government, academia and media. Ramsay said, “I would like to congratulate ACSI on this important initiative. Australian asset owners play a fundamental role in our financial markets and it’s good to see them take the lead in setting best practice standards for the disclosure and management of stewardship activities.”
Download the Australian Asset Owner Stewardship Code and Frequently Asked Questions
https://www.acsi.org.au/images/stories/ACSIDocuments/Stewardship_code/AAOSC_-_Final.pdf
Above media release from ACSI
PSI Asia Pacific - Utilities - Electricity - Water & Local Government Network Bulletin Blog - The below items are published as an internal PSI Bulletin monthly or you can follow by each post by e-mail.
