Regnan for investors: why and how?

The why

Large funds, investment trusts, foundations and insurance pools generally hold large and diverse portfolios, with exposure to individual companies often extending decades.  Unlike many, they require that these investments — and the markets in which they are traded — perform well over the long term.  Regnan‘s founders and clients recognise there is value for their portfolios in funding a dedicated initiative to safeguard this long-term performance in the face of shorter-term market pressures.  Some characterise this as taking up rights and duties as active owners.  Others speak of expanding their focus from alpha to beta.  Some emphasise stewardship and responsible investment practice as a rationale.  Many see it as simply sound risk management for the long term.

The how

Regnan’s rigorous research identifies environmental, social and corporate governance issues that are likely to affect long-term portfolios.  Via its collective engagement service, it addresses identified issues through private conversations with company directors and executives; as well as discussions with regulators, professional bodies and others who influence corporate and market practices.

In our dealings with companies and with the market, ours is a constructive and collegiate approach.  Company feedback to our clients is that our approach is well-informed and worthwhile for both parties.

The engagement service is an overlay, with Regnan's research underpinning a carefully-developed program run on behalf of the engagement clients it represents.  We take accountability seriously, with objectives clearly communicated to (and approved by) clients in advance, and regular reporting to clients against these.

The collective approach offers institutions economies of scale to access a critical mass ESG expertise, and means participants lend their combined weight to Regnan's engagement efforts, whilst reducing the demands on the time of their senior corporate personnel.

Many participating institutions consider this service to be complementary to engagement undertaken by in-house personnel or client-driven services, with value particularly ascribed to the rigour of its value-relevance, its ability to pre-empt issues of concern to stakeholders (eg members) and its consequent ability to maintain independence from "knee-jerk", partisan or "squeaky wheel" influences.

Client testimonials are available on request.  For more information please contact us.

 

“If shareholders as owners are unwilling to exercise their powers or make themselves heard, directors and management will lack guidance or constraint from those whose interests they are supposed to serve.”

HIH Royal commissioner Justice Neville Owen,
The Failure of HIH: A corporate collapse and its lessons
Vol. 1, Part Three, Section 6.3