The European Fund and Asset Management Association (Efama) has published a new stewardship code which aims to set out best engagement practices with investee companies for asset managers.
‘Principles for asset managers’ monitoring of, voting in and engagement with investee companies”, is a revised version of Efama’s previous code of external governance published in 2011.
The code aims to set out how, through stewardship, asset managers can encourage best business and management practices in companies on environmental, governance, human rights and social challenges.
Efama said that an update of the code was necessary to bring it into line with the revised Shareholder Rights Directive, which EU member states have to implement by June 2019.
The scope of what is covered in the engagement with investee companies was also updated and amended to also include environmental and social concerns, compliance, culture and ethics, and performance and capital structure.
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