Asset owners are increasingly aware of the need for clarity in their fund manager mandates on their expectations for long-term investment. To help address this need, the Shareholder Responsibilities Committee of the ICGN has established a working group, led by NSFM participant Paul Lee, to consider and promote best practice in the agreements between asset owners and their fund managers, with the aim of promoting more long-term behaviour in the capital markets and a greater focus on key risks.
The working group recently issued a call for evidence. The consultation document does not yet include specific draft contract terms. Instead, it proposes which issues could be covered by model terms, and discusses the drivers which might lead an asset owner to include such terms in its fund management contracts. The NSFM encourages its participants to share their thoughts and ideas on the consultation document with the members of the working group.