ISS launches governance risk service for investors

ISS launches governance risk service for investors

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Institutional Shareholder Services (ISS) has launched its new service Governance Risk Reports, which helps global asset owners monitor governance risk across their investment managers‘ portfolios.

The service is aimed at providing asset owners with the insight to developing voting policies for their external managers, informing fund manager and company engagement, and to help mitigate risk in both actively and passively managed funds.

"Asset owners will gain tremendous insight into governance risk across their portfolios with the introduction of Governance Risk Reports," said Stephen Harvey, ISS’ chief revenue officer. 

"Eight of the 25 largest global corporations have QuickScores of eight or higher, suggesting heightened governance risk for state and municipal pensions systems, sovereign wealth funds, local pension authorities and other funds with likely exposure to these companies. Now more than ever, asset owners need real-time intelligence to protect their beneficiaries‘ interests through effective governance monitoring."

The corporate governance solutions provider's new service offers reports that flag key issues in external managers’ proxy voting activities. 

The report gives asset owners a picture of governance risk, including reputational risk, risk to long-term shareholder value creation, risk to the interests of a fund’s stakeholders, and risk to effective fulfillment of fiduciary obligations.

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