Responsible Investor

RI Global news round-up 26/11/07

RI’s bite-sized summary of the week’s responsible investment news.

Generation Investment Management, the SRI fund manager set up by Nobel Peace Prize winner Al Gore and ex-Goldman Sach’s Asset Management chief, David Blood, has signed a deal to distribute its funds in Switzerland through Swiss fund manager Lombard Odier Darier Hentsch. The Swiss fund manager is expected to announce a number of its own sales tie-ups with international fund managers in the coming months for its SRI funds.
Generation recently announced a tie-up with Kleiner Perkins, the US venture capital firm to fund technology start-ups technology that address global climate change.
US investors could sue the US Securities and Exchange Commission if it tries to push through controversial rules on proxy access this week. Investors say the SEC’s action could undermine their right to representation on the board of companies they invest in. A group of major US and European pension funds has appealed to the SEC to delay action on its proxy access proposals. Jack Ehnes, chief executive of the $176bn California State Teachers’ Retirement System, Sacramento, said: “We are urging Chairman (Christopher) Cox not to move forward. We are asking the commission to stop and listen to the world’s shareholders.” The main proposal being discussed by the SEC would allow companies to reject proxy votes from shareholders if they are seeking to nominate independent candidates to the board. The regulator has suggested that shareholders only be allowed to nominate board members if they

hold at least five percent of the company’s shares for a year. The American Federation of State, County and Municipal Employees, has indicated it could take legal action if the SEC does not postpone its decision.
Hermes, the UK activist fund manager owned by the £36bn BT Pension scheme, will hear this week what plans its owners have for the business. Speculation is mounting that Hermes could be split into individual boutique fund managers to better incentivise staff. The BT trustees will discuss a five-year plan for Hermes at a meeting of trustees on Nov 29 following an operations review, carried out by Bain and Co, the management consultancy. The fund manager is also expected to announce shortly the appointment of a new chief executive to replace Mark Anson, who left earlier this year to return to the US and joined Chicago-based Nuveen Investments as president.
The £3.2bn UK Merchant Navy Officers’ Pension Fund has appointed PIRC, the UK proxy voting company, to provide global shareholder voting recommendations and execution on its entire overseas equity portfolio which will involve coverage of companies in over 20 markets. PIRC will also execute voting rights for the fund.
Shareholders of UK companies regularly raise concerns about levels of executive pay at annual general meetings, while in Europe pay is less of an issue, according to Manifest, the UK voting advisory agency. Average voting turnout, at 54.8%, is also higher in the UK than in Europe where 52.3% of shareholder votes are

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