Ethos is one of the first Swiss institutional investors to announce its support for the UK Stewardship Code. This code is a self regulation code that investors should adopt in their stewardship duties with regard to asset ownership and management.
The UK Stewardship Code is a best practice code for institutional investors, asset managers and consultants established by the UK independent regulator the Financial Reporting Council. The code sets out good practice on engagement with investee companies to which institutional investors should aspire. It contains seven principles that should apply in regard to stewardship activities. The principles include the exercise of shareowner voting rights in investee companies. Institutional investors should establish clear guidelines, not only with regard to the vote, but also relative to their engagement activities and collaboration with other investors. They should also specify when and how they escalate their activities in order to protect and enhance shareholder value.
The UK Stewardship Code for institutional investors is complementary to the UK Corporate Governance Code for listed companies. Ethos welcomes this initiative by the UK Financial Reporting Council, which has introduced symmetry in the best practice requirements in the financial market. Since its inception, Ethos has put in place rules that are in line with the principles included in the UK Stewardship Code.
