Investor forum on track for launch in July 2014

In December 2013, the Collective Engagement Working Group’s report recommended that an Investor Forum, to be investment practitioner-led and independent of any trade association, should be set up in the first half of 2014. The purpose of the Investor Forum would be:

• To promote and drive a partnership between asset owners, asset managers and companies to increase focus on long-termism. This means investment in and support for companies with credible strategies for sustainable competitive advantage leading to long-term wealth creation. It also means matching the needs of the majority of the ultimate beneficiaries of the investments, whose time horizons can often be measured in decades, with such sustainable corporate strategies.
• To form Engagement Action Groups, supported by the widest possible range of institutional investors, including overseas investors, to engage collectively with companies and to take escalating action where necessary when issues of concern arise.

The Collective Engagement Working Group established an Investor Forum implementation team under the leadership of Sacha Sadan, Director of Corporate Governance at Legal General Investment Management, and the Working Group committed to providing a progress update at the end of Q1 2014. The progress update is:

• Constitution– a formal Constitution for the Investor Forum is under development. It is expected that this work will be completed and that the Investor Forum will have legal existence and constitution by the end of June 2014.
• Forum Director– the Implementation Team has shortlisted candidates for the Forum Director role.
• Governing Body– work is well underway towards the identification of a Chairman and other members for the Investor Forum’s governing body.

Sacha Sadan said:

“I am grateful for the overwhelming expressions of support and specific offers of practical help which we’ve received from individuals and organisations, both in the UK and internationally, to help us get the Investor Forum off the ground. There is a strong appetite amongst investors to strengthen long-term focus and to elevate the quality of engagement between investors and corporates. Good progress is being made and I am confident that we are on track to establish the Investor Forum as planned in July.”