Of bad actors and asset managers - EDITORIAL - Magazine
Published: April 3, 2024
There’s a very interesting and somewhat alarming highlight in the Natixis outlook survey of 500 institutional investors. They rate the number on...
Source: asiaasset.com
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New YorkUnited StatesH Jeff SmithMilton FriedmanMerrill LynchNew York TimesCredit Suisse First BostonFriedman DoctrineSocial ResponsibilityIncrease ItsManagement ReviewSuisse First BostonThere Amp Rsquo Sa Very Interesting And Somewhat Alarming Highlight In The Natixis Outlook Survey Of 500 Institutional Investors They Rate Number One Macro Risk For 2024 As Ldquo Geopolitical Bad Actors Who With Action Can Upset Economic Market Assumptions Globally Rdquo Don Rsquot Act Alone Are Enabled Supported Asset Management Financial Community Has Limited Room To Do Anything About This But It Does Have Influence Over Other Political Comes Back Persistent Argument Range Concerns Ofa Or Business EntityNd The Ongoing Shareholder Value Versus Stakeholder Tussle Modern Formulation Of Concept Dates From Milton Friedman Amp Rsquos 1970 Essay In New York Times Titled Ldquoa Doctrine Social Responsibility Business Is To Increase Its Profits Rdquo Has Been Applied Ever Since By Exactly Kind Constituencies You Rsquod Expect It Now Being Wielded Right Wing State Politicians Us And Rightist Groups ElsewhereIke Spain Amp Rsquos Vox PartyO Argue Against Amp Ldquo Woke Rdquo Alternatives Such As EnvironmentOcial And Governance Investing Stakeholder Value Has Been In Vigorous Contention With The Doctrine Practically Since Its Formulation Takeh Jeff Smith Amp Rsquos Study On Shareholders Versus Stakeholders Debate July 2003 Issue Of Mit Sloan Management ReviewHich States That Amp Ldquo The Incentive Schema And Investor Recommendations At Credit Suisse First Boston Merrill Lynch Have All Provided Rich Fodder For Those Who Question Premise Of Shareholder Supremacy Rdquo Smith Underlined Such Evidence Failure Theory Ndash Managers Primarily Havea Duty To Maximise Returns Victory Stakeholder Hellip Balance Shareholders Rsquo Financial Interests Against Other Stakeholders As EmployeesUstomers And The Local Community Amp Rdquo Corporate Priorities Are One Thing But Those Of Investors Like Pension Funds Surely Another Inherently Exist To Exercise Broader Responsibilities Than Simply Maximising Return On Investments Applying Narrowly Interpreted Shareholder Value Theory ThemSpecially Over Typical Pension Fund Investment Timeframes Where Exogenous Shocks Like Climate Change Might OccurEems Inimical To Their Purpose The Us Asset Management Industry Amp Rsquos Readiness Kowtow Political Fashion In Abandoning Its Previous Esg Commitments Has Been Striking AndSome Might SayHameful If The Fact BasedIduciary Obligation Driven Calculations That Those Policies Were Based On Valid OnceRen Amp Rsquot They Still Valid Should Really Be Thrown Overboard To Pander Headline Grabbing 