Stewardship Code extends to investment service providers
The Aotearoa New Zealand Stewardship Code is expanding to include investment service providers, a move aimed at further strengthening New Zealand’s stewardship activity and increasing alignment with international stewardship codes.
The Code was developed by investment industry representatives and has seen rapid adoption across New Zealand following the 2022 launch. The majority of New Zealand’s assets under management have already signed up, including domestic and international signatories such as Westpac NZ’s investment arm BT Funds Management NZ, Harbour Asset Management, the NZ Super Fund and Northern Trust. Globally, signatories to the Code manage over $2.8 trillion in assets globally.
Code Director Jackson Rowland says investment service providers can include financial advisors, investment consultants, proxy advisors, and data and research providers.
“These service providers are a crucial part of the investment ecosystem, and key to delivering stewardship outcomes. They support asset managers and owners to achieve their stewardship goals - whether that’s developing stewardship policies, undertaking research, engaging with companies, or preparing reporting.”
BT Funds Management NZ recently produced its second Sustainable Investment Report which includes a summary of its stewardship activities. Service providers were again crucial to the preparation of the report. Head of Investment Solutions Philip Houghton-Brown notes “when the Code was drafted it was always intended for it to extend to service providers in the future, so it’s great to see this happening. They’re a key part of our investment work, and being signatories to the same Code should increase consistency and improve outcomes across the market.”
Following consultation last year about expansion of the Code, two investment service providers have already signed up, Rowland says.
Philip Foo, Vice President of Asia-Pacific Research and Engagement at Glass Lewis, stated “Glass Lewis has a longstanding track record of supporting investment stewardship across Asia-Pacific. Our engagements with New Zealand’s public companies and investors—backed by our decades of experience in proxy voting and governance research—plays a vital role in advancing investors’ stewardship objectives. By becoming a signatory to the Aotearoa New Zealand Stewardship Code, we reaffirm our commitment to responsible investment practices and remain focused on providing New Zealand investors with the insights and solutions to strengthen their stewardship impact.”
Ethical Investing NZ, an award-winning ethical financial advisor, say they signed up because they want to show their commitment to a high standard of responsible investing, acting as a key link between fund managers and their clients. Mark Holtom, Director, Financial Planner explains “we’re in a privileged position of being able to work with fund managers, sharing client insights and thoughts around ethical investing, part of which is the stewardship of their wealth for future generations.”
Ethical Investing NZ regularly meet with portfolio managers to help ensure the engagement with companies around their environmental, social and economic value is both relevant and effective.
See the full Code here, and for more information about becoming a signatory to the Code, please contact Code Director, Jackson Rowland, at jackson@stewardshipcode.nz.