As the focus on responsible and sustainable forms of investment increases, debate about the value of engaging actively with companies is intensifying. In this article, we summarise the findings of one particular paper on the topic, which considers whether investors can achieve improved outcomes through such engagement. The paper, entitled Active Ownership, is authored by Professor Elroy Dimson and Oğuzhan Karakaş of the University of Cambridge’s Centre for Endowment Asset Management (of which Newton1 has been a longterm supporter) and Dr Xi Li of the London School of Economics. It is with their kind permission that we provide this summary.
1 Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds
The value of investments can fall. Investors may not get back the amount invested.