The National Association of Pension Funds (NAPF), the trade association for the UK pension industry, and ISS, the proxy voting agency, have altered the ownership structure of RREV, their joint venture.
RREV, which provides research, recommendations and electronic voting services to institutional investors in UK listed stocks, will now be owned solely by ISS.
The two partners claim this will improve operational efficiency and enhance services to clients. A long-term licensing agreement will ensure that the NAPF’s corporate governance policy remains the sole basis used by RREV in its analysis of cases and its voting recommendations on UK companies.
Indeed, both parties emphasise RREV will continue to operate as it has since its inception. David Paterson, recently appointed Head of Corporate Governance for the NAPF and Head of Research for RREV, will ensure continuity in the application of NAPF policy and in RREV’s research. A RREV Advisory Committee is also being formed with members from NAPF, ISS and RREV.
“The NAPF has been active in the field of corporate governance for over three decades, and is committed to remaining so” says Christine Farnish, Chief Executive of NAPF. “Pension funds are major institutional investors in equities and our leadership in terms of encouraging high standards of corporate governance is important. The NAPF’s policy on corporate governance will remain the foundation of RREV’s service going forward, but the new arrangements will give ISS more flexibility in delivering operational value to RREV clients.”
John Connolly, CEO of ISS, says the success of RREV since its launch in 2003 reflects the authority of the NAPF. “We remain committed to providing the best possible corporate governance services for our clients and are confident that the new structure of the partnership will prove beneficial for all involved,” he says.