Stewardship and engagement will become an integral part of investment in the future, and asset owners need to write stewardship and non-financial objectives into their mandates with external managers, according to Saker Nusseibeh, chief executive international of Federated Hermes.
Because investment- unlike trading the financial markets – is long-term, investee companies’ actions over the long term are crucially important. Speaking at Sustainability Digital, Saker Nusseibeh, chief executive international of Federated Hermes told delegates that assets held in an index fund give investors no connection with the company over the long term. There is no conversation with the company about strategy, how they treat their workforce or mitigate black swans. Investment, by contrast, is about being a responsible owner for the long term.
Nusseibeh told delegates that long term investment also required a different kind of analysis. You need people who can talk in the same language, he said, adding: “It’s very labour intensive.”
He urged delegates to learn about ESG and plough resources into garnering a knowledge that goes deeper than just claiming to integrate ESG.
Regarding engagement, Nusseibeh advised working with companies on the issues that they care and worry about. Run it in a democratic way; ask them what issues concern them, he said.
“If you want to help make the company better, think about the issues we face together.”
He said that changing company behaviour involves measuring performance, including how corporates perform against peers in their sector. Over time those that meet sustainability KPIs outperform their sector substantially because they are simply enhancing their ability to make money over the long-term, he said.
“It is about doing capitalism better. Discussions about ESG and sustainability should always be about investment.”
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Nusseibeh, who was awarded a Commander of the Order of the British Empire in the Queen’s 2019 New Year’s Honours list for services to Responsible Business and Finance, said few active managers outperform the benchmark but investing long term leads to outperformance.
However, investing for the long term doesn’t mean holding and then leaving. Being owners of a company involves making sure the business is sustainable and thinking about risk and how to mitigate it. For example, not integrating diversity in a business “halves supply chains” and not acting in the interests of stakeholders like the local community invites regulation.
He said sustainability involved doing long term economics “properly” and that by ensuring society is prosperous, individuals also prosper.
“The companies we own shape the societies we live in, and people want to ensure that the society they retire into is sustainable,” he said.
He told delegates that this belief in stewardship will increasingly impact funds management. All investors will recognise that ownership of public or private companies involves an element of stewardship “to look after their investments over the long term.”
Stewardship and engaging with companies will become an integral part of investment, he predicted. Hermes first started engaging for stronger UK corporate governance in 1983, was a founding signatory of the PRI in 2006, and spearheaded the Climate Action 100+.
The audience, made up of asset owners from 42 countries, was in support of integrating stewardship into the investment process, with 60 per cent saying that stewardship should be mandatory in a live poll at the event.
Nusseibeh said that asset owners need to write stewardship and non-financial objectives into their mandates. You can’t just allocate to passive or active funds without a stewardship target assigned, he said.
He also urged investors to talk about long-term realistic targets that incorporate the value of integrating ESG whereby value is attributed to aspects of a business other than the financials.
For example, COVID-19 has taught people that culture is very important within a company.
“Companies with strong cultures survived COVID but how do you measure culture?” he asked. There should be outcomes that are related to behaviour. “This is the only way to invest separate from betting on the markets,” he said.
He also said that low cost, passive investment would come back to “bite” because of the wider costs incurred by society as a whole. If global warming reaches three degrees the savings investors will have made via passive allocations will be wiped out by the increased costs of water, food and energy.
“The money we save has got to be able to let us retire well,” he concluded.
Sarah Rundell is a staff writer for Top1000funds.com based out of London. She writes on institutional investment across all asset classes, global trade and corporate treasury.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
