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Case Study Hermes Funds

In: Business and Management

Submitted By ghufran
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Hermes Fund Management
Dr. Okan Geray

1. Is the role of institutional investors to influence the strategy of companies in which they invest?
Yes, they are influence on the strategy for the company * Institutional investors are in a unique position to exercise influence over companies and to hold them accountable for good governance. Given the typically significant stake they hold, they have the ability to demand meetings with the senior management of companies, challenge them on issues of concern, discuss strategies for achieving the companies’ goals and objectives and be the leading voice of shareholders in demanding corrective action when wrongdoing occurs.

* Thus institutional investors have a critical and proactive role to play in the governance of companies. They have better access to information and possess the resources to build the necessary monitoring Capabilities. Given their unique position of influence, there is a need to priorities their leadership role in governance.

* Institutional investors are professional investors who act on behalf of beneficiaries, such as individual Savers or pension fund members, the categories of institutional investors are wide and can include Collective investment vehicles, which pool the savings of many, and licensed fund managers to whom these funds are allocated.

* Hermes is a UK independent fund manager investing approximately £36 billion on behalf of over 100 clients, including pension funds, insurance companies, government entities, and financial institutions. where Hermes believes that its intervention and involvement as long-term shareholders can release the latent value that exists within the company.

* The corporate Governance for Hermes , that Hermes Undertake on behalf of its clients , Improve corporate Governance will lead to better performance and ultimately increase their...

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