Today, institutional investors are under more pressure than ever before. With corporate wrongdoing, government regulation and fiduciary litigation on the rise, it takes active engagement to ensure your funds’ financial security, maximize value and fulfill fiduciary obligations.
The engagement mandate
Institutional involvement is a key factor in addressing corporate malfeasance. Securities class actions with an institutional investor as the lead or co-lead plaintiff are less likely to be dismissed, cost less to prosecute, yield larger settlements and lead to more significant corporate governance reforms. Congress expressly recognized the importance of institutional engagement in passing the Private Securities Litigation Reform Act of 1995, which encourages institutional investors to act as lead plaintiffs in securities class actions.
In addition to monetary benefits, strategic involvement in cases—the right cases—is tangible proof of your efforts on behalf of fund beneficiaries and your commitment to your fiduciary responsibilities.
Lifting the burden
We understand the difficulties of monitoring a diverse institutional portfolio, and are committed to finding workable engagement strategies. For example, our free monitoring service, SecuritiesTracker, helps you promptly identify important marketplace events, assess potential claims and take steps to protect assets—without disrupting your business. If litigation is appropriate, we will represent you on a fully contingent basis, putting forth all costs and expenses. We can also help you improve corporate governance through direct action to implement director corporate governance measures that serve shareholder interests.