Stewardship requires more active investor engagement enforced by asset owners to achieve best long-term returns, argues respected academic Professor Alex Edmans.
Engagement by investors should not be reserved for "intensive care" cases but involve ongoing regular dialogue with companies, and should be enforced by asset owners, according to a respected academic.
Professor Alex Edmans of London Business School was writing on the prospect of an update to the UK's Stewardship Code and the measures necessary for asset managers to fully integrate long-term investment practices.
He argues that stewardship should move beyond being a siloed activity for a dedicated department, but instead become integrated in an asset manager's investment strategy.
Writing in the Financial Times, Edmans also argues th
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