BlackRock and California State Teachers’ Retirement System are among the private equity limited partners and general partners that have agreed to enforce investor protection and corporate governance principles from 2018.
A group of large institutional investors, including Washington State Investment Board and Florida’s State Board of Administration, and asset managers to form the Investor Stewardship Group, which will enforce a list of six asset management principles. It also has six guidelines for listed company investments.
The asset manager principles include ensuring accountability to their LPs, active monitoring of the corporate governance of portfolio companies, a commitment to disclose their conflicts of interest policies and encouraging the adoption of the principles among their peers in the market.
Other signatories include MN Netherlands, TIAA Investment and State Street Global Advisors.
The firms are expected to implement the principles in January 2018.
The move comes after the Trump administration took initial steps to repeal the Dodd-Frank Act, a financial crisis-era regulation which included consumer protection measures.