passive, active, activistpassive, active, activist changes in the investor landscape andreas posavac...
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Passive, Active, ActivistChanges in the Investor Landscape
Andreas PosavacManaging Director Ipreo
M&A and Governance AdvisoryCIRA Jahreskonferenz, Vienna - 17 October 2018
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Megatrends to Impact Investor Relations
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Passive Investorso Largest relative inflowso IR-Immunityo Not only index trackers,
but enhanced index, quants, smart-beta funds etc.
Corporate Governanceo Proactive ESG Integration o Combined Beneficial Owner,
Regulatory and Investor (Best Practice) Pressureo UNPRIo Stewardship Codes
Shareholder Activismo Event Driven, Change Agents
or Individualo Close ties to institutional
investor & proxy advisor community who make activist campaigns successful
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Increased ESG Sensitivity
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Board Oversighto Board Independence
o Board Composition
o Board Skill Matrix
o Diversity
o Gendero Age
o Background
o Qualification
o External Mandates
o Committee Composition
Remunerationo Remuneration Structure
o Peer Comparison
o Pay for Performance
o Absolute, Short Term, Long Term, Variable Components
o Pay Ratio vs. Employees
Governance Structureo Shareholder Rights
o One Share, one vote
o Poison Pills
Othero Capitalization
o Auditors
o Climate Risk
o Carbon Disclosure
o Cybersecurityo Supply Chain
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Top ATX Prime Investors Overview
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Increasing ESG Sensitivityo Both active and passive shareholders proactively integrate ESG criteria in both investment and vote discretion
o Beneficial owners, regulators and associations drive the trend (UNPRI, CDP, Stewardship Codes)
o Engagement numbers are up multi-fold over the last years (e.g. passive holders cannot vote by feet, drive change by engagement)
o Establishment of dedicated CG/ESG teams to engage with issuers, develop stricter rules and guidelines to force change
o We are just at the beginning….
o Climate risks, mandatory pay and gender ratios etc.
Rank Firm NameATX Prime Owned
$M Feb 18Total Global Equity $M Orientation Style Turnover Money Center
1 Norges Bank Investment Management (Norway) 2,542.1 655,044.7 Passive Value Low NOR - Oslo2 The Vanguard Group, Inc. 1,436.6 2,956,980.4 Passive Index Low USA - Malvern, PA3 BlackRock Fund Advisors 1,396.7 2,009,789.0 Passive Index Low USA - San Francisco, CA4 Fidelity Management & Research Company 922.3 938,590.5 Active Growth Low USA - Boston, MA5 Dimensional Fund Advisors, L.P. (U.S.) 805.1 417,076.7 Passive Value Low USA - Austin, TX6 Erste Asset Management GmbH 706.8 584.7 Active Growth High AUT - Vienna7 Erste Sparinvest Kapitalanlage GmbH 685.9 3,222.2 Active Growth Moderate AUT - Vienna8 J.P. Morgan Asset Management (UK), LTD 560.0 122,775.0 Active Growth Moderate GBR - London9 Raiffeisen Kapitalanlagegesellschaft mbH 536.3 4,135.9 Active GARP Moderate AUT - Vienna
10 T. Rowe Price Associates, Inc. 413.1 674,847.2 Active Growth Low USA - Baltimore, MD11 BlackRock Advisors (U.K.), LTD 408.4 153,842.6 Passive Index Low GBR - London12 3 Banken-Generali Investment GmbH 406.1 1,697.5 Active Growth High AUT - Linz13 Amundi Asset Management S.A. 400.9 91,691.7 Active Value Moderate FRA - Paris14 APG Asset Management N.V. 394.9 174,811.3 Active Yield Low NLD - Amsterdam15 Acadian Asset Management, LLC 392.8 38,554.6 Passive Deep Value Moderate USA - Boston, MA16 Deutsche Asset Management Investment GmbH 379.7 121,866.5 Active Value Low DEU - Frankfurt17 TIAA-CREF Investment Management, LLC 372.9 320,633.8 Passive Growth Low USA - New York, NY18 Amundi Investments Austria (ex-Pioneer) 353.2 1,303.0 Active Growth Moderate AUT - Vienna19 BlackRock Asset Management (Deutschland) AG 333.9 58,110.9 Passive Index Low DEU - Munich20 Lyxor Asset Management SAS 303.6 73,943.0 Passive Index High FRA - Paris
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Passive is the new Active
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Investment Management (from passive to active)
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©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
European Shareholder Activism 2018
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Source: Ipreo 2018, ActivistInsight2018, Factset 2018
Activist Campaign Trendso AuM inflows to activist funds globallyo Track record positive for leading activist funds, establishment of local funds who mirror and support international leaderso Improved reputation of activist and engagement funds (investor community, press, regulators)o Size is no longer an issue, activist campaigns across all market caps, sectors, regions and even ownership structures
©2018 Ipreo. All rights reserved. None of Ipreo, its affiliates, or any of their third party providers is liable for any informational errors, incompleteness, or delays, or for any actions or decisions taken by any person as a result of any information contained herein.
Thank you!Q&A?
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Andreas PosavacManaging Director – M&A and Governance Advisory
E.: [email protected] Tel.: +43 664 444 11 30