In line with SEBI guidelines, SBI Mutual Fund has become the first fund house to adopt stewardship code. The code asks institutional investors such as MFs and AIFs to enhance monitoring and engagement with their investee companies.
In a press release, Ashwani Bhatia MD & CEO, SBI MF said, “The stewardship code will guide SBI MF‘s vision to be a trusted and respected asset manager by being an ethical, responsive and innovative partner in investment solutions.”
According to Navneet Munot, ED & CIO, SBI MF, “We have a fiduciary duty to create long term value for all our stakeholders. The stewardship code gives an insight into the AMC’s strong ESG integration initiatives and firm resolve to take decisions in the best interest of its unit holders.”
“SBI Mutual Fund was the first mutual fund in India to adopt the CFA Institute’s Asset Manager Code of Conduct, is the signatory of UN-supported Principles of responsible investing and claims compliance with the Global Investment Performance Standards (GIPS®). The AMC shall continue to monitor and engage constructively with its investee companies on matters related to environmental footprint, social impact and governance.” adds Navneet.
SEBI has asked MFs and AIFs to enhance monitoring and engagement with their investee companies. For instance, institutional investors should engage with investee companies on operational performance, financial performance, strategy, corporate governance, remuneration, ESG guidelines and so on. The regulator feels such increased engagement would improve corporate governance and benefit clients of institutional investors.
