Outsource? Overlay? Oversight?

Governance Watch supports asset owners in their stewardship and ESG responsibilities and enables compliance with investment good practice, particularly global Stewardship Codes and the UN-backed Principles of Responsible Investment.

ESG – a fiduciary responsibility

Global Stewardship Codes and regulations underpin the fiduciary responsibility for trustees to monitor their investments and portfolio managers. Stewardship Codes enable investors to better understand their roles as active owners in the companies in which they invest. Where investment management is outsourced, a critical part of fiduciary responsibility is to monitor their fund managers’ active ownership work. The UK Stewardship Code, for example, says:

“The responsibility for monitoring company performance does not rest with fund managers alone. Pension fund trustees and other owners can do so either directly or indirectly through the mandates given to fund managers. Their actions can have a significant impact on the quality and quantity of engagement with UK companies.”

Stewardship Code Compliance Made Easy

Minerva Analytics provides a time and cost-effective way to monitor external fund managers and so ensure compliance. Some of the world’s largest funds already rely on Minerva Analytics to implement their governance policy so you can rest assured that you are in safe hands.

What does Governance Watch Offer?

Governance Watch eliminates complex, time-consuming administration by providing trustees with a succinct executive summary of the key action points. . Governance Watch monitors governance and voting policy issues and can also provide timely alerts to important up-coming events on potentially controversial issues. This is backed up with a thorough audit of policy implementation by the fund manager(s).

Governance Watch therefore meets trustees’ needs to monitoring companies and meetings in their portfolio, as well as making sense of fund manager reporting.

Global Compliance Monitoring and Policy Development

A bespoke governance and voting policy is developed based on particular concerns the fund may have. These can include the very latest recommendations from the global governance and sustainability codes including, for example, OECD, TCFD, ICGN, CII or PLSA principles.

Our analysts perform the most detailed analysis of complex issues, leaving trustees free to focus on the issues and topics of concern to the fund. For hard pressed fiduciaries this makes significant economic sense.

Being able to draw upon expert analyses in ‘real time’ also enables funds to pro-actively liaise with their fund managers on contentious issues.

Governance Watch gives you:

  • A weekly portfolio analysis of up-coming shareholder meetings which enables users to stay in tune with fund-specific issues as they arise; and
  • Weekly portfolio reconcilliations;
  • A quarterly portfolio summary analysis of the issues pertinent to your fund so that they can be compared with fund manager reports for any variances; and
  • An annual monitoring meeting to review and refine policy.

Global Vote Audit

Not only is the task of understanding hundreds of meetings without a frame of reference daunting, so also is the task of making sense of the weighty and disparate quarterly fund manager voting reports.

Minerva Analytics’s specialist systems help with identifying the contentious meetings and decisions in your portfolio through audit trail and variance analysis.

Minerva Analytics’s sophisticated vote management software compares the fund’s voting policy against fund manager voting reports looking for any differences between policy and activity. These variances may well be fully justified, however you will now be in a position to discuss these differences with your fund managers at your regular meetings. In a multi-manager scenario, this type of monitoring will help to eliminate variances in voting activity and create a constructive dialogue with your fund managers about future activity.

Why Minerva Analytics?

Minerva Analytics ensures that concerned investment fiduciaries can monitor and audit their governance, voting and activism policies quickly, reliably and cost effectively. Minerva Analytics has significant operational experience in the governance field having worked with some of the most active and demanding fund managers since 1996.

  • Consistent track record;
  • Knowledge & understanding of pension funds needs;
  • Stable & committed team;
  • Quality-driven, best value service;
  • Independent, UK-owned & managed.
Working as your governance partner, Minerva Analytics will ensure that:
  • Your fund is pro-actively updated with governance best practice and key voting issues;
  • Your trustees can keep their knowledge of the issues fully up to date.

Next Steps

Call on +44 (0)1376 503500 or email hello@minerva-analytics.info for a no obligation discussion
Last Updated: 16 April 2011