The European Fund and Asset Management Association is urging money managers to set and follow a public engagement policy when dealing with companies they invest in, it said in the latest edition of its stewardship code.
In the revised code, "Principles for asset managers," EFAMA asks money managers that are already monitoring and voting in companies they invest in to establish public guidelines on when and how they escalate engagement to protect the value of their clients' investments.
Money managers should also disclose details of the implementation process and results of their stewardship and voting activities, EFAMA said.
In the amended new version of the code, EFAMA updated the language to bring it in line with the European Union's Revised Shareholder Rights Directive, adding new sections on how money managers should carry out their shareholder rights on behalf of asset owners.
The European fund management association also outlined the environmental and social, compliance, ethical, performance and capital structure concerns that now fall under the scope of engagement with investee companies.