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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

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The Importance of Stewardship

The Importance of Stewardship

Arun Kelshiker

20 years: Asset management and stewardship

In the final video of this two-part video series, Arun explains why stewardship is important. First he discusses the ways in which investors exercise stewardship across different asset classes, then he looks at the reasons for actioning stewardship, and finally he finishes by talking about the current trends within stewardship and what the future looks like.

In the final video of this two-part video series, Arun explains why stewardship is important. First he discusses the ways in which investors exercise stewardship across different asset classes, then he looks at the reasons for actioning stewardship, and finally he finishes by talking about the current trends within stewardship and what the future looks like.

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The Importance of Stewardship

10 mins 12 secs

Key learning objectives:

  • Understand the ways through which investors action stewardship across different asset classes

  • Identify the reasons for actioning stewardship

  • Assess the future of stewardship

Overview:

Stewardship is not the same across all asset classes. Investors of different asset classes will have different levels of influence and different desired outcomes. All should use stewardship however with the intention of achieving the highest possible outcomes but also to help with societal and environmental issues. Following this, we are seeing a major shift within stewardship from governance issues only to the broader environmental, social and governance issues.

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Summary

How do investors action stewardship across different asset classes?

Shareholders are increasingly expected to exercise their voting rights and input into key company decisions including director appointments and board pay.

Fixed income investors can influence issues with clearly defined legal rights. 

Private equity owners often have a substantial ownership stake together with board positions. This allows them to directly influence a company given the collaborative development of a company. 

Private debt holders can also employ specific deal terms to achieve their intended outcomes.

Why should investors action stewardship? 

There are 4 main reasons investors should action stewardship:

  • Fiduciary duty
  • Regulation
  • Risk management
  • Universal ownership / accountability

Fiduciary duty within investing, is a person or organisation that carries a position of trust along with the legal responsibility for managing the monies of others in their best interests. Stewardship is considered to be part of an investors’ fiduciary duty. 

Regulations include stewardship codes which can be voluntary or mandatory. Two popular codes in Europe include the Financial Reporting Council’s UK Stewardship Code, which was revamped in 2021, as well as the European Union Shareholder Rights Directive or SRD II, which both incorporate how stewardship is addressing ESG issues.

Investors are also incentivised to look beyond solely the interests of their individual investees and engage on systemic issues, aligned with broader sustainability outcomes and well-functioning financial markets.

Finally, a slight variation on Universal Ownership, is that investors as stewards, represent key stakeholders holding corporations accountable where regulation and governments have failed.

What trends are we seeing in stewardship?

Current approaches have highlighted the importance of collaborative action and the need to collectively come together, with one voice to achieve common goals. 

In the past, stewardship efforts were generally focused on governance issues. While governance continues to remain important,  we are seeing the broader Environmental, Social and Governance or ESG coming to the forefront of investors’ stewardship efforts.

We have also seen a year-on-year increase in social resolutions across the areas of diversity, equity and inclusion, greater fair pay and racial justice. 

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Arun Kelshiker

Arun Kelshiker

Arun Kelshiker was formerly the Head of Asset Allocation and Portfolio Strategy at Standard Chartered Bank and part of the bank's Global Investment Committee, where he provided investment advisory and multi-asset portfolio solutions. His focus is now with Cambridge Sustainable Investment Partners, which draws its expertise from the Resilience and Sustainable Development Centre at Cambridge University. He is also a university lecturer at the Frankfurt School of Finance and Management and is Vice Chair of the CFA UK's Inclusion and Diversity Committee and its Investment Committee.

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