How might a fund manager demonstrate to clients that it is addressing the challenge of resourcing of stewardship activities?

A fund manager can effectively illustrate its commitment to addressing the challenges associated with resourcing stewardship activities through a combination of methods.

Detailing the engagement prioritization process is valuable because it demonstrates a strategic approach to stewardship. Clients can see how the fund manager assesses and selects which issues or companies to engage with, providing transparency and showcasing a thoughtful allocation of resources.

Setting out plans to add stewardship staff and build expertise among fund managers highlights the organization’s commitment to enhancing its capacity for stewardship. This conveys proactive measures taken to ensure that the team is equipped with the necessary knowledge and skills to engage effectively in stewardship activities. It shows that the manager is investing in long-term capabilities rather than addressing issues on an ad-hoc basis.

Demonstrating active participation in formal collective engagement vehicles signifies a collaborative approach to stewardship. This can enhance the fund manager’s influence as part of a larger group, potentially leading to more impactful engagement outcomes. It also indicates that the fund manager is committed to working within the broader investment community to promote effective stewardship.

Together, these actions provide a comprehensive picture of how a fund manager is addressing the challenges of stewardship resourcing, making the option that encompasses all these initiatives the most accurate representation of effective communication to clients.