By Janet Mcfarland, June 18th 2013, The Globe and Mail
The world’s largest investment funds – including pension plans and mutual funds – should adopt a code of conduct to ensure they will wield their growing power appropriately in a new “age of the institutional investor,” according to Stephen Davis, a leading governance advocate.
The Harvard University professor spoke Tuesday at the annual meeting of the Canadian Coalition for Good Governance (CCGG), telling Canada’s largest institutional investors that governments have increasingly shifted power to major investors in the hope they will police the capital markets.
The problem with this “big bet,” he said, is that most funds are not equipped to do so.
“We have to make ownership meaningful,” Mr. Davis said. “We’ve spent years on reform of governance of public corporations. Now we need to turn those energies to mobilizing prudent ownership among institutional investors. Continue reading…