Pension funds are required by law to invest their pension assets responsibly so that they are able to fulfil all their pension commitments. Pension funds therefore invest large amounts in listed companies. The quality of the corporate governance at the listed companies in part determines the development in the value of the investments.
Definition of corporate governance
Pension funds invest as capital providers for companies. As such, they are direct stakeholders, alongside directors or supervisory directors. All direct stakeholders must deal with the system of interactions and processes in the company. The way in which these interactions and processes are ordered and regulated is referred to as corporate governance.
The Dutch Corporate Governance Code prescribes a number of behaviors. One of these behaviors is the willingness of institutional investors to engage in dialogue with the companies in which they invest.
We are affiliated with Eumedion on behalf of a number of clients. Eumedion has a number of roles, including to:
- provide services in relation to corporate governance;
- promote consultation between institutional investors and listed companies;
- consult with the Dutch government, European Union institutions and other relevant authorities and organizations;
- influence legislation and regulations.
For more information about responsible investing, have a look at our sustainable investment approach.