Panel Discussion: Institutional Investors and Stewardship

Institutional investors have become increasingly important in Asian equity markets. With 18% of the region’s market capitalisation, they can play an important role in influencing corporate decisions through engagement with portfolio companies. To support this, many Asian jurisdictions have introduced stewardship codes to formalise and promote engagement practices. However, questions remain as to whether existing regulatory frameworks are sufficient to foster meaningful engagement, and whether institutional investors face barriers when seeking to engage with companies in the region.

The session will review how institutional investors in Asia engage with their portfolio companies and the challenges they are faced with. Results are drawn from a survey on institutional investor stewardship and engagement practices in Asia conducted by the OECD. trends in institutional ownership in Asia and how engagement with investee companies is evolving. The session will also consider ways to strengthen regulatory frameworks and promote more effective stewardship.