Lessons from Norway?
‘There are of course good reasons for SWFs to stay away from shareholder activism that is typically carried out by short-term and event-focused hedge funds. These include, but are not limited to, potential political sensitivities and regulation that is specifically targeted at SWFs. However, it seems difficult to defend a complete hands-off approach of SWFs in relation to the governance of companies in which they invest.’
Active ownership: driving the change
‘A code of practice is not about creating a one-size-fits-all approach, or re-writing the rules to add another reporting requirement for companies, but to ensure that the purpose of [board] reviews is more in equilibrium between investors and companies rather than tilted towards management. Transparency with regards to the methodology undertaken is fundamental to this, albeit recognising that sensitivity around some issues may prevent full public disclosure.’’