We are committed to being an active owner of our investments, and look to forge close relationships with the companies the Fund invests in directly.
Stephen: One of our core investment beliefs is that robust governance and decision-making structures can improve long term returns for shareholders. Our legislation also requires us to manage the NZ Super Fund in line with best practice.
Anne-Maree: Best practice governance is therefore a very strong focus for us – both in terms of how we manage our own organisation, and what we expect of companies that the Fund is invested in.
Stephen: As active investors, we forge close relationships with the companies the Fund invests in directly. We continue to challenge their Boards to meet the global best practice standards of governance that we hold ourselves to.
Anne-Maree: For investments where we have a significant shareholding, we may appoint Directors to the Board. It is important to us that these Directors have the skills needed by the Boards they are on, and are using their expertise to help ensure our investee companies fulfil their long-term growth potential.
We expect our Directors to be strong advocates of:
Stephen: We invest in ongoing training and development to ensure that our Directors understand our objectives and drivers, how their investee company fits into the Fund’s portfolio and strategies, and are up to speed on emerging governance trends. This is our contribution to ensuring our Directors have the skills and expertise to represent the Fund effectively, and are doing their jobs to a global best practice standard.
Anne-Maree: We are committed to supporting our Directors in achieving this, and to continuing to challenge Boards to have a long-term mindset, and give full consideration to environmental and social factors, when setting strategy and making major business decisions.
For investments where we have a significant shareholding, we may appoint staff and Independent Directors to the Board. We expect our Directors to follow clear governance and decision-making structures that promote decisiveness, efficiency and accountability, are effective, and add value to the Fund.
Even when we do not have representation at a Director level, we still look to use our influence as shareholders to improve company performance. We do this by encouraging high governance standards across markets and asset classes, particularly in the New Zealand market. We have been active members of the New Zealand Corporate Governance Forum since its establishment in 2015.
The Forum has been instrumental in helping to promote global best practice in governance to drive the longer-term health of New Zealand’s capital markets. We also exercise our voting rights locally and globally across the Fund’s segregated equity portfolio. This is important in maintaining oversight of Directors, Boards and company policies.