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Responsible investment is a long-term movement whose time has come. How can its leaders take the movement further? This session examined the importance of impactful stewardship to deliver sustainable wealth creation and its potential to transform financial, social and environmental outcomes.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Saker%20Nussebeih%20CBE%22%2C%22job_role%22%3A%22Chief%20executive%2C%20International%20at%20Federated%20Hermes%20(United%20Kingdom)%22%2C%22content%22%3A%22Saker%20Nussebeih%20is%20chief%20executive%20of%20the%20international%20business%20of%20Federated%20Hermes%2C%20appointed%20November%202011%2C%20having%20joined%20in%20June%202009%20as%20chief%20investment%20officer.%20He%20is%20also%20a%20member%20of%20the%20Federated%20Hermes%20Executive%20team.%20Prior%20to%20this%2C%20Nussebeih%20was%20global%20head%20of%20equities%20at%20Fortis%20Investments%2C%20having%20previously%20been%20CIO%20global%20equities%20since%202005.%20Before%20this%2C%20he%20was%20CIO%20of%20global%20equities%20and%20head%20of%20marketing%20for%20SGAM%20UK.%20This%20followed%20SGAM%E2%80%99s%20acquisition%20of%20Trust%20Company%20of%20the%20West%2C%20where%20Nussebeih%20was%20a%20managing%20director%20running%20global%20and%20international%20strategies%2C%20as%20well%20the%20London%20office.%20He%20started%20his%20career%20at%20Mercury%20Asset%20Management%20in%201987.%20%5CnNussebeih%20is%20founder%20of%20the%20300%20Club%20and%20was%20an%20inaugural%20member%20of%20the%20CFA%20Institute%E2%80%99s%20Future%20of%20Finance%20Advisory%20Council%20from%202013%20until%202019.%20He%20is%20a%20member%20of%20the%20IIRC%20Council%2C%20the%20FCA-PRA%20Climate%20Financial%20Risk%20Forum%2C%20the%20United%20Nations%20Environmental%20Programme%20Financial%20Initiative%20Steering%20Committee%2C%20the%20Banking%20Standards%20Board%2C%20the%20UK%20National%20Advisory%20Board%20on%20Impact%20Investing%2C%20and%20the%20advisory%20Board%20of%20the%20National%20Youth%20Orchestra.%5CnIn%202018%2C%20Nussebeih%20was%20named%20CEO%20of%20the%20Year%20at%20the%20Financial%20News%20Asset%20Management%20Europe%20Awards.%20He%20has%20a%20BA%20and%20PhD%20in%20Medieval%20History%20from%20King’s%20College%2C%20University%20of%20London.%5CnHe%20was%20awarded%20a%20CBE%20(Commander%20of%20the%20Order%20of%20the%20British%20Empire)%20in%20the%20Queen%E2%80%99s%202019%20New%20Year’s%20Honours%20list%20for%20services%20to%20Responsible%20Business%20and%20Finance.%22%2C%22image%22%3A%2233576%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fsaker-nusseibeh-cbe-6b15a85%2F%3ForiginalSubdomain%3Duk%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%2C%20institutional%20content%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20conexust1f.flywheelstaging.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2233531%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Long-term deep engagement on the issues that matter most leads to substantial outperformance versus the sector. Going forward, there will be an indisputable recognition by all investors that ownership of companies demands a critical element of stewardship.
Legitimate ESG managers have full integration, deep engagement with investee companies and a humility to accept that we are still learning. ESG is not a ‘do-gooder’ thing, it’s about doing capitalism better. I welcome every manager aiming to be an ESG manager. This is about us all winning, not one company winning.
Not believing in diversity is simply stupidity because it halves the supply chain.
COVID has taught us that culture, for example, has a real value in challenging circumstances which hasn’t always been truly acknowledged by investment analysis.
If you have a 30 year time horizon, expenditure on engagement is a value adding investment, not merely a cost.
Don’t bet on markets. Instead, invest and engage for the long-term. If you want to bet, go to Vegas, it’s a lot more fun.
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Poll results
Should stewardship be mandatory?[vc_line_chart x_values=”” values=”%5B%7B%22title%22%3A%22Yes%22%2C%22y_values%22%3A%2259%22%2C%22color%22%3A%22blue%22%7D%2C%7B%22title%22%3A%22No%22%2C%22y_values%22%3A%2224%22%2C%22color%22%3A%22pink%22%7D%2C%7B%22title%22%3A%22Maybe%22%2C%22y_values%22%3A%2218%22%2C%22color%22%3A%22chino%22%2C%22custom_color%22%3A%22%2350485b%22%7D%5D”]
One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, says Chris Ailman, chief investment officer at the giant pension fund.
Last week BlackRock’s Larry Fink announced the company would put climate change centre-stage across its $7 trillion portfolio after what critics have called years of prevarication. Sarah Rundell looks behind what the statement could mean in practice.
At the international business of Federated Hermes, we believe that the investment management industry could be a potent force in building a better world; but today that potential is largely unfulfilled.
Impact investment and its combination of financial returns and social or environmental purpose is beginning to move from fringe to the financial mainstream in part because the long-held concept that investment should only maximise shareholder value is beginning to fade.
As concerns about climate change reach fever pitch, Harvard Business School has published a report that shows investment strategies that “aggressively’ reduce carbon emissions can significantly boost fund performance.
Ben Caldecott from The Oxford Sustainable Finance Programme at the University of Oxford explains how emerging technologies, changing client preferences, new regulatory landscapes, and evolving economic geographies create new opportunities for more effective engagement and forms of active ownership.
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