NSFM participant and member of the coordinating team, Frank Jan de Graf, has co-authored a paper which appears in the prestigious Institutional Investor Article Collection. Together with his co-author Alfred Slager, CIO of the Stork Pension Fund, he argues that RI movement needs to focus less on what it traditionally focusesd on - namely ethical screening, best-in-class portfolios & thematic fund - and should focus more on collaborative
value-enhancing activities. The paper also analyses the pension fund investment policies that need to change to enable this long term sustainable investment approach.
This is a big challenge for how the industry is organised today since it cuts across what asset owners think of as their fiduciary responsibility, how service providers compete and what key stakeholders (pressure groups especially and media and thus clients/consultants) look for.
Is this recommendation doomed to be another academic's unrealistic hope or can the sector change the way it competes?
The paper originally appeared in the Journal of Investing, Fall 2009:
Frank Jan would welcome feedback and especially ideas about how to ensure this doesn't remain an academic pipedream!