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Page 2 - US$12 trillion ICGN to ratify ‘long-term/sustainable’ model mandate for client/manager contracts

Asset manager fees and remuneration of individual fund managers should be clearly aligned with those of the client, while turnover of companies in investment portfolios should follow an expected range (subject to a periodic review) and require disclosure and explanation if exceeded. The recommendations also stress that clients should receive reports on any change in a manager’s governance, portfolio manager remuneration, investment approach, risk appetite, sales by key staff of holdings in the fund or the manager, or regulatory investigations or legal proceedings taken against it. Management accounts or financial statements should also be shared regularly with clients.

Finally, the mandate terms stress that commission payments such as investment research and voting should reflect an appropriate balance between short- and long-term client interests and be transparent. It adds similar terms for counterparty risk. The ICGN says its model mandate terms should be seen as complimentary to existing guidelines such as the UN Principles for Responsible Investment and others specific to particular asset classes such Institutional Limited Partners Association Principles and the Hedge Fund Standards Board Standards.
Link to ICGN conference

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NETWORK WITH 45+ ASSET OWNERS AT RI AMERICAS 2014, 9-10 DEC, NYC