UniSuper ramps up Asia corporate governance
Tuesday, 25 November 2008 12:20pm
The $23 billion UniSuper is taking the corporate governance of its $1 billion investments in Asia to new heights - the fund is extending its proxy voting policy for shareholders to include ventures in the region.
UniSuper has already commenced voting on a third of its stocks in Asia, representing more than 400 companies in the region.
The super fund's increasing allocation into Asia - which represents around 20 per cent of world stock market capitalisation - along with an improvement in voting services in Asia means that investors can now have a greater say in Asian markets.
"Although corporate governance practices in Asia are still maturing and the proxy voting processes are variable across the region, the necessary infrastructure is in place for UniSuper to start voting," said UniSuper chief investment officer, David St.John.
"By voting in Asia UniSuper has the potential to contribute to, and drive, improvements in the region's corporate governance standards. Not only is this expected to enhance the long-term risk/return performance of UniSuper's investments, it will also encourage greater participation from other global investors," he said.
The approach is consistent with the OECD Principles of Corporate Governance, which highlight the need to address cross-border impediments and encourage institutions to vote in as many jurisdictions as practicable.
The move also echoes the fund's commitment to the United Nations Principles of Responsible Investment (UNPRI), which encourage funds to actively vote their proxies.
"Our move into Asia reflects UniSuper's ongoing commitment to good governance," said St.John.
UniSuper is engaging UK-based proxy advice specialists Pension Investment Research Consultants as its proxy voting advisor in Asia. PIRC is also used for UniSuper's proxy voting for US, UK and European equities.
Ruth Liew
