Last week, the UK’s asset manager association published a paper calling for a “rethink” of stewardship. Key challenges set out in the Investment Association’s (IA) report included setting realistic expectations about what stewardship can achieve, managing high expectations from government and regulators, and avoiding an over-reliance on voting as the primary barometer of stewardship.
Implicit in some of the recommendations for change is the idea that asset owners need to step up, for example, by better articulating their stewardship expectations and working to embed this in their relationships and mandates with asset managers.
The IA’s report came a few days after a 40-plus group of asset owners published a statement urging asset managers to continue to participate in, or even join, the Net Zero Asset Managers initiative (NZAM). The initiative is expected to relaunch later this year, so perhaps the asset owners behind the statement already know if their asset managers are sticking with NZAM or are prepared to make mandate changes if not.
This, for some, is the real test of whether asset owners are serious about stewardship and holding their asset managers to account.
In a couple of months, the proxy voting season will begin in earnest. Last month, JP Morgan Asset Management announced it would no longer be using proxy advisers for US voting and would instead cast votes guided by an in-house AI tool. The introduction of AI proxy voting will change some things, but not others, commentators say.
Meanwhile, turn to our most recent magazine for a closer look at the sustainability-linked bond market and a profile of a groundbreaking deal suggesting strong investor appetite for resilience bonds.
Items to note:
- IPE’s Transition Conference & Awards 2026 will take place on 22 April at The Hague.
Susanna Rust
ESG Editor
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