600-Plus Companies Adopt NYC Pensions’ ‘Proxy Access’ Agenda

Comptroller Stringer’s push for major shareholders to change board structure, climate change views, is paying off.

More than 600 companies have adopted the “proxy access” policy of New York City’s “boardroom accountability” initiative since its 2014 launch, according to Comptroller Scott Stringer’s office.

The targeted companies, which include more than 71% of the S&P 500, gives large, long-term investors like the city’s pension funds, the ability to nominate directors to company boards. It’s also a bid to increase so-called corporate responsibility.

By Stringer’s reckoning, the companies have seen changes in board diversity, their climate change actions, and how they treat their workers since complying with New York City’s guidelines.

The proxy access campaign gives new clout to big public pension funds such as the city’s five pension funds (Employees’ Retirement System, Teachers’ Retirement System, Fire Pension Fund, Police Pension Fund, and the Board of Education Retirement System.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

More than 35 companies that Comptroller Stringer’s office specifically targeted have adopted the measure in the past year. One of which was streaming giant Netflix, which Stringer’s office labeled as one of its “persistent hold-outs.” Proxy access had been getting a majority vote for four consecutive years in annual shareholder meetings before the company buckled.

“Corporations have been in the business of raising barriers, shutting blinds, and avoiding accountability for far too long,” Stringer said. “Proxy access gives us the leverage to flip that script, and break open the insular systems which have enabled excessive CEO pay, dismal levels of boardroom diversity, and inaction on climate change.”

Related Stories:
New York Comptroller Aims to Double Pension Plan’s ESG Funding

New York State Comptroller Calls Out 4 More Companies on Board Diversity

New York City Leads Anti-Carbon Coalition of Big Funds

Tags: , , ,

China Investment Corp. Sees Flat Results

Rough year brought on by wild global swings and higher volatility, says CEO.

The China Investment Corp.’s portfolio saw a near-flat return as it lost a little less than 1% of its assets from the previous year, going from $941.4 billion to $940.6 billion, according to its latest annual report.

Peng Chun, the organization’s chairman and CEO, said 2018 was a “rough year for international institutional investors such as CIC” due to the “wild swings of the global capital market and increased volatility of risk assets.” He also said in the report that the fund beat its annual benchmark by 371 basis points. He did not say what that benchmark was.

The plan’s 10-year returns were 6.07%, beating the organization’s benchmark by 45 basis points. CIC is China’s sovereign wealth fund responsible for managing part of the nation’s foreign exchange reserves.

The plan’s allocations were 44.1% alternative investments, 38.3% public equity, 15.2% fixed income, and 2.4% cash and others respectively take up 38.3%, 15.2%, 44.1%, and 2.4%.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

“On investment management, we continued to implement refined management of public market investments, adjust and optimize our investment strategy and the makeup of managers, and carry out new strategic investments such as risk factor investing,” Chun said. “Progressively, we increased our investment in alternative assets, consolidated our private equity investments, increased investment in assets with stable returns and stepped up co-investments in various ways.”

Chung summed up the lackluster year and the ones going forward with a quote from a Chinese poem. “Without the continuous bitter cold, there can be no fragrant plum blossom,” he said. “The tougher the road, the sweeter the taste of success—pain precedes gain.”

Related Stories:

China Investment Corp. Goes Long on Digital Disruption at SALT

China Investment Corp.’s Fixed Income, Absolute Return Head Quits

Tags: , , , ,

«