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Outside the Box: Active managers see value in these 3 company practices but indexers hate them. Who’s right?

Every corporation is unique. It follows that governance arrangements should be tailored to suit. Yet many shareholders, especially indexers, roundly condemn certain governance practices as if one size fits all.  Three corporate practices illustrate this: combining the roles of chairman and chief executive; staggered director terms, and classes of stock with different voting rights. Each… Continue reading Outside the Box: Active managers see value in these 3 company practices but indexers hate them. Who’s right?

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Letter: Small-cap fund managers require encouragement

Following the letter from Harry Nimmo on the role of active fund managers in raising capital (November 17) I would like to highlight what I believe is the importance of private investors in this process. Increasingly, small-cap fund managers are wary of investing in very small companies typically with market capitalisation of less than £200m… Continue reading Letter: Small-cap fund managers require encouragement

Business news

Norway’s $1.2tn oil fund to use more external managers

Norway’s $ 1.2 billion oil fund will dramatically increase its reliance on outside asset managers next year, as the world’s largest sovereign wealth fund seeks to boost returns. Jon Nicolaisen, deputy governor of the central bank of Norway in charge of the oil fund, said in a speech on Thursday that from next year the… Continue reading Norway’s $1.2tn oil fund to use more external managers

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Letter: Tackling mental health needs managers to be bold and candid

I wish to commend your leader regarding the challenge of tackling mental illness (The FT View, November 14). Globally it is estimated more than 264m people suffer from depression, and a World Health Organization study estimates depression and anxiety cost the global economy up to $1tn each year in lost productivity. The pandemic has certainly… Continue reading Letter: Tackling mental health needs managers to be bold and candid

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Letter: Active managers play a vital role in raising capital

I read with interest the analysis by Robin Wigglesworth highlighting the challenges faced by active fund managers (“Active managers struggle to prove their worth in a turbulent year”, The Big Read, November 12). First, he highlights underperformance by active managers, which in the main must reflect the difference in fees between active and passive funds,… Continue reading Letter: Active managers play a vital role in raising capital

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Active managers struggle to prove their worth in a turbulent year

The history of financial markets has more wild plot twists, temper tantrums and triumphant comebacks than a daytime soap opera — or a US presidential election for that matter. Even by Wall Street’s standards, 2020 has been exceptional, yet for some active asset managers it offered the promise of salvation of sorts. Over the past… Continue reading Active managers struggle to prove their worth in a turbulent year

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Asset managers warned over ‘insufficient’ climate risk reporting

Asset managers are not providing enough information about climate risks at the companies they invest in to enable clients to make informed choices, a regulatory task force has warned. Despite record inflows to funds that invest according to environmental, social and governance principles — taking their assets under management above $1tn this year — the… Continue reading Asset managers warned over ‘insufficient’ climate risk reporting

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Australia’s pensions minister clashes with fund managers and green lobby

Australia’s assistant superannuation minister, Jane Hume, is on a collision course with fund managers intent on beefing up their ESG credentials and environmental groups after the country’s climate-sceptic government launched a series of reforms for the A$3tn superannuation sector. In recent years, pension funds around the world have increasingly used their investment muscle to influence… Continue reading Australia’s pensions minister clashes with fund managers and green lobby

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Letter: The reason why managers oppose ‘bean counters’

I fully agree with your editorial of October 21 (“The EU’s fiscal progress needs a political anchor”), and also with the recommendations of the European Fiscal Board. The EU needs “greater budgetary muscle”, as you say. But what does this actually mean and imply? How do you get there? I have a few ideas, since… Continue reading Letter: The reason why managers oppose ‘bean counters’

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Fund managers grapple with limits of remote working

Top executives at UK fund house Jupiter were brimming with enthusiasm to have returned part-time to the company’s London office last month. “Our managers are really enjoying the interaction with other colleagues,” chief executive Andrew Formica told clients in a video interview. “It’s great being back in an office environment again,” agreed veteran equity manager… Continue reading Fund managers grapple with limits of remote working