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Corporate Governance

Thoughts on Corporate Governance - Video discussing Royal Bank of Scotland Share Consolidation

View Insight Out Magazine's Force for Change video at the RBoS AGM in Edinburgh where shareholders express their views about the proposed Royal Bank share consolidation. See opinions expressed by Philip Graves of Fundamental Tracker Investment Management Limited's Munro Fund on this and corporate governance in general.

 

How Fundamental Tracker Investment Management will implement the UK Stewardship Code

At the Institute of Chartered Secretaries and Administrators Corporate Governance Conference on 18 March 2009, the former Chairman of the Financial Reporting Council, Sir Christopher Hogg, stated that the financial crisis was a result of “a massive failure of governance at every level involved, going way beyond, though not excusing the failures of corporate governance in publicly-quoted UK banks.”

The UK Stewardship Code 2010 (the Code) was introduced by the Financial Reporting Council (FRC) in an attempt to encourage a longer-term and more enthusiastic involvement in company ownership. The Code aims to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities.

The Stewardship Code is published and overseen by the FRC which is the independent regulator overseeing financial reporting, accounting and auditing and corporate governance. Although it is not mandatory the FRC encourages those service providers to disclose how they carry out the wishes of their clients by applying the principles of the Code that are relevant to their activities.

This document explains Fundamental Tracker Investment Management Ltd.’s approach to the Stewardship Code.

Stewardship policy

Principle 1 - Institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities

Principle 2 - Institutional investors should have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed

Principle 3 - Institutional investors should monitor their investee companies

Principle 4 -Institutional investors should establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value.

Principle 5 - Institutional investors should be willing to act collectively with other investors where appropriate

Principle 6 - Institutional investors should have a clear policy on voting and disclosure of voting activity.

Principle 7 - Institutional investors should report periodically on their stewardship and voting activities.

 

Fundamental Tracker Investment Management’s Response to the Financial Reporting Council’s Consultation Report on the Revised Stewardship Code (April 2012)

Click here to see Fundamental Tracker Investment Management Linited's response to the consultation.

Voting Record

Barclays PLC - FSA’s Final Notice Report 27/6/12 – Reinforces Fundamental Tracker Investment Management’s views on remuneration and corporate governance. 

(For FTIM's views on non-executive representation on company boards see also July 2012 blog)

The Munro Fund to vote against the board at the BSkyB AGM on 1st November 2012

The S&W Munro UK Fund to vote against the remuneration report at the WPP AGM.

The S&W Munro UK Fund to vote against the share consolidation at the RBoS AGM on 21st May 2012

The Munro Fund will vote against the remuneration report at the Cookson AGM on Thursday May 17th

The S&W Munro UK Fund to vote against the remuneration report at the Barclays AGM on 27th April 2012

The S&W Munro UK Fund to vote against the board at the BSkyB AGM on 29th November 2011

The Munro Fund will vote against the G4S acquisition of ISS

 

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