CLOSE

We permit the publication of our auditors’ report, provided the report is published in full only and is accompanied by the full financial statements to which our auditors’ report relates, and is only published on an access-controlled page on your website https://www.hermes-investment.com, to enable users to verify that an auditors’ report by independent accountants has been commissioned by the directors and issued. Such permission to publish is given by us without accepting or assuming any responsibility or liability to any third party users save where we have agreed terms with them in writing.

Our consent is given on condition that before any third party accesses our auditors’ report via the webpage they first document their agreement to the following terms of access to our report via a click-through webpage with an 'I accept' button. The terms to be included on your website are as follows:

I accept and agree for and on behalf of myself and the Trust I represent (each a "recipient") that:

  1. PricewaterhouseCoopers LLP (“PwC”) accepts no liability (including liability for negligence) to each recipient in relation to PwC’s report. The report is provided to each recipient for information purposes only. If a recipient relies on PwC’s report, it does so entirely at its own risk;
  2. No recipient will bring a claim against PwC which relates to the access to the report by a recipient;
  3. Neither PwC’s report, nor information obtained from it, may be made available to anyone else without PwC’s prior written consent, except where required by law or regulation; and
  4. PwC’s report was prepared with Hermes Property Unit Trust's interests in mind. It was not prepared with any recipient's interests in mind or for its use. PwC’s report is not a substitute for any enquiries that a recipient should make. The financial statements are as at 25 March 2016, and thus PwC’s auditors’ report is based on historical information. Any projection of such information or PwC’s opinion thereon to future periods is subject to the risk that changes may occur after the reports are issued and the description of controls may no longer accurately portray the system of internal control. For these reasons, such projection of information to future periods would be inappropriate.
  5. PwC will be entitled to the benefit of and to enforce these terms.
I accept
CLOSE

1. Select your country

  • United Kingdom
  • Austria
  • Australia
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Iceland
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • USA
  • Other

2. Select your investor type

  • Financial Advisor
  • Discretionary Investment Manager
  • Wealth Manager
  • Family Office
  • Institutional Investor
  • Investment Consultant
  • Charity, Foundation & Endowment Investor
  • Retail Investor
  • Press
  • None of the above

3. Accept our terms and conditions

Proceed

The Hermes Investment Management website uses cookies to remember your preferences and help us improve the site.
By proceeding, you agree to cookies being placed on your computer.
Read our privacy and cookie policy.

Chicken management is like fund management

Promoting a healthy global financial system in 2016

Home / Hermes EOS Blog / Chicken management is like fund management

I keep chickens. Three gorgeous ladies, called Teapot, Marmalade and Sugarlump. They provide copious eggs for my breakfast table, assuming the conditions are right. I am a diligent feeder and talk to them regularly, but am shamefully remiss when assessing the safety and integrity of their coop and checking for beasties in their ears, unless something is obviously wrong, and by then it is usually too late.

Chicken management is like portfolio management. Companies tend to perform well when they are healthy, well-managed and there is a healthy and robust environment in which they can operate. For this reason, investors must be mindful of the health of the wider global economic and financial system in which they operate. At Hermes EOS, our engagement programme does just that. We work to promote good stewardship of clients’ assets, but also the health of the wider system in which they operate. We want a system that acts in the interest of its principals rather than its agents. To do this, we:

  • Encourage reliable legal and regulatory frameworks: By intensifying dialogue with legislators and regulators, we encourage reliable legal and regulatory frameworks which provide transparency, afford equal rights for investors and protect minority interests, for example through controls on related party transactions.
  • Support continued improvement in corporate governance: The development, review and continuous improvement of Corporate Governance Codes in various markets are essential as our economies develop. Key aspects of such codes should be guidance on constructive dialogue between investors and directors to enhance accountability and information exchange and the investor role in the director appointment process. We also seek innovation in the development of best practice in enhanced audit committee and auditor reporting in the UK and elsewhere.
  • Promote active investor stewardship: We engage with regulatory authorities and standard setters globally to develop country specific Stewardship Codes, which encourage investors to be engaged owners of the investee companies, for example, in Singapore, Denmark, Sweden and Taiwan.
  • Advocate high quality and holistic reporting: We push company reporting that provides investors with a clear articulation of the performance of the underlying business and communicates the factors that materially affect the ability of an organisation to create value over time, for example, by promoting integrated reporting with key regulators and companies we engage with around the world. We will continue to support initiatives, such as the International Integrated Reporting Council, which promote company reporting on material sustainability issues.
  • Focus on the long term: We continue the dialogue on long-termism and the efficiency of the financial system with key regulators and legislators, for example, the European Commission and the ongoing clarification of fiduciary duty by constituents of the investment chain – led by asset owners – to include the identification and management of long-term risks, including those related to environmental, social and governance issues.
  • Encourage greater alignment of interests: We encourage better alignment of the terms in fund manager contracts with the needs of asset owners and their beneficiaries, including on performance measurement, use of benchmarks and compensation, for example, by promoting the key messages of the Model Mandate Initiative of the International Corporate Governance Network. We also seek to bring about innovation through the way we work with clients.

Back to my breakfast table and to Teapot, Marmalade and Sugarlump. I start the year knowing that their chicken coop is clean and intact, the vet has given the all clear and the ladies are healthy and safe, for now. This year will no doubt bring plenty of surprises and it is important that we remain vigilant so that we are well-placed to respond to them as they arise. This is especially true given the dynamic, complex and inter-connected nature of today’s global economic and financial system.

Share this post:
Emma Hunt Emma Hunt is Co-Head of Hermes EOS, with responsibility for strategic client management and business development. Emma has been an active member of the investment world for 20 years, focusing on governance, stewardship and ESG issues. She has worked throughout the investment chain, including investment management, research and most recently consulting. She joined Hermes EOS from Towers Watson where she worked closely with asset owners from around the world, as well as the consulting firm itself, to integrate principles of stewardship and ESG into their investment beliefs, policy and practice. She holds an MSc from Imperial College, a Diplôme International de Commerce from École Supérieure de Commerce in Toulouse, a BA Honours in European Business and Economics and the CFA Institute’s Investment Management Certificate.
Read all articles by Emma Hunt

Find posts by author

  • Bill Mackenzie
  • Bruce Duguid
  • Christine Chow
  • Colin Melvin – Global Head of Stewardship
  • Darren Brady
  • Dominic Burke
  • Emma Hunt
  • Freddie Woolfe
  • Hans-Christoph Hirt
  • Jaime Gornsztejn
  • Jennifer Walmsley
  • Jon Brager
  • Justine Lutterodt
  • Karin Ri
  • Leon Kamhi – Head of Responsibility at Hermes investment Management
  • Louise Dudley
  • Lui Goldie
  • Mais Hayek
  • Manuel Isaza
  • Mark Sherlock, CFA
  • Martina Macpherson
  • Matthew Doyle
  • Maxine Wille
  • Michael Russell, CFA
  • Michael Viehs
  • Naheeda Rashid
  • Natacha Dimitrijevic
  • Nina Rehrbein
  • Nina Röhrbein
  • Rochelle Giugni
  • Roland Bosch
  • Sachi Suzuki
  • Saker Nusseibeh
  • Tatiana Bosteels
  • Tim Goodman
  • Victoria Barron

Find posts by category

  • Select category
  • environment
  • governance
  • social
  • strategy