Mercer has launched a service to assist institutional investors in meeting the requirements of the UK Stewardship Code.
The service will also be extended to the EFAMA Code for External Governance and the Eumedion Best Practices for Engaged Share-Ownership. The new stewardship service includes a tool that allows asset owners to check whether their asset managers are compliant with the codes and a service to help investors benchmark their own investment policies against the codes principles.
Mercers Stewardship Service will also support trustees with the implementation of effective stewardship into their ongoing activities and within their investment policies and documentation.
There is a growing view among academics and investment professionals that environmental, social and governance issues does affect the short and long-term performance of institutional investment portfolios, says Will Oulton, Mercers head of responsible investment for Europe. It is the duty of trustees to act in the best long-term interests of their beneficiaries, and we believe that effective stewardship can be an important element in both protecting and enhancing long-term shareholder value.
The UK Stewardship Code applies in the first instance to investment managers; however, the Financial Reporting Council (FRC) has stated that all institutional investors, including asset owners, need to engage actively in the process and encourages them to report if and how they have applied the code. Mercer is a signatory to the code.
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