Regnan: working with the market
Our relationship with listed companies
While many investors aim to select securities that will outperform the market, Regnan represents institutions with very long-term portfolios, likely to average an exposure to all index companies in perpetuity.
These investors employ Regnan to maintain focus by portfolio companies on those long-term and bigger picture factors, relevant to future value, that are nonetheless neglected by the market. They see this as ultimately in the interests of both the providers of capital (such as a superannuation fund's beneficiaries) and the users of capital (listed companies). While the objective remains financial, this focus directs greater than usual attention to long versus short-term trade-offs and to the impact of externalities (positive and negative) on other entities to which they are exposed.
Regnan undertakes our own analysis to identify sources of risk and opportunity that fall into this category and seeks assurances from companies about the governance of these issues, which frequently fall into the category of "ESG" risk. Where public information does not assure us of the strength of the company's approach, we engage in a two-way private dialogue with boards and management to better understand and address these.
It is not our objective that such risks be eliminated, merely that their oversight and management be undertaken with due care, skill and diligence, and that corporate disclosures offer investors sufficient information to meet their own fiduciary requirements for vigilance over these risks in their portfolios.
Regnan publishes occasional papers, provides contributions to public consultations and to the public debate in support of these objectives. We also host invitational events for key business figures, trustees, and investors as part of our program of work.
While we do not provide direct consulting services to companies, we can provide guidance on areas of interest and best practice ESG governance on request.