The Responsible Investor Handbook

Mobilizing Workers' Capital for a Sustainable World

Thomas Croft, Annie Malhotra

• Publisher: Routledge
• Year: 2017
• Print ISBN: 9781783535552
• eBook ISBN: 9781351283625
• Topic: Business
• Subtopic: Business General
• Index: Business

For decades, workers' capital stewards have invested wisely to provide a secure retirement for millions of people around the world. This money – our money – represents an enormous share of economic and capital market wealth. It has seeded and grown innumerable innovative industries that have had far-reaching impacts. However, the 2008 financial crisis has seriously threatened these trusted assets and drained away prosperity.In response, a growing number of investors are moving towards responsible investment policies and strategies, addressing the rising expectations of consumers and benefiting from the financial advantages such strategies bring. Everyday citizens now want to see their investments not only do well, but do good.

But, what constitutes responsible investment, and how can it be undertaken in practice? What is the impact of responsible investment strategies on investment performance? How can trustees, managers and advisors implement these strategies in line with their fiduciary responsibilities? How can plan trustees and staff members convince all stakeholders of the need to invest in resilient growth?The Responsible Investor Handbook, commissioned by the AFL-CIO and global progressive investors, is a lay-friendly "how-to" manual, sharing the best in responsible investment practice with capital stewards and other policy leaders who want to do the right thing with our common wealth.This invaluable toolkit enables readers to:

Understand the pioneering role of workers' capital in building infrastructure and vital services

Devise a responsible investment strategy

Select and monitor service providers

Bring on board stakeholders with conflicting interests

Avoid short-termism

The Responsible Investor Handbook is the first book devoted to aligning the long-term investment priorities of working people with capital stewards and the financial complex that manages their assets. It is an essential read for trustees and capital stewards seeking the positive outcomes of a responsible investment strategy; pension and institutional investors looking to realign their strategies with the interests of workers and citizens; and any professional seeking a better understanding of the importance of responsible investment and its impact on capital markets.

Index

“2 and 20” formula 166, 173, 186, 193, 194

2008 financial crisis 4-5, 7, 107, 186, 231, 233, 238

ABP 52, 53, 247

Abvakabo FNV 52

Active ownership 19, 35-7, 206, 215

2013 study on 21

AFL-CIO’s Equity Index Fund and 148

definition 19, 254

passive investors 131, 133, 136

private equity investments 176

protocols for 210

proxy voting 19, 21, 36, 50, 131, 215

shareholder proposals 19, 133, 134, 135, 215, 237, 262

ULLICO’s International Equity Fund 148

See also Shareholder activism

Actuarial assumptions

definition 254

demographic assumptions 79

discount rate methods 80

economic assumptions 79

setting 79-81

Affordable housing 2, 37, 39, 43, 59, 61, 243

AFL-CIO HIT 32, 152

Amalgamated Bank 158

Australia 60

AFL 29, 30

AFL-CIO

Capital Stewardship Program 36, 218, 269

Center for Working Capital 61

civil rights movement 32

Committee for the Investment of Union Pension Funds 30

Country Watch List 140

Executive Paywatch website 237

Heartland Labor/Capital Network 33

HIT see Housing Investment Trust

housing investment institutions 30

infrastructure investments 186, 187-8

Key Votes Survey 134, 158, 269

letters of credit 188

Mortgage Investment Trust (MIT) 32, 152

Office of Investment 36-7, 269

Proxy Voting Guidelines 132-3, 134, 267, 269

Resolution 11 8, 14, 30, 43

trustee education 218

AFT see American Federation of Teachers

Agency separation 3, 8, 9, 74, 76, 212, 217

Alternative investments

definition 254

ensuring positive impacts 194-5

ensuring responsible contracting 196

fees and expenses 193

historical U.S. l...

Table of contents

• Cover
• Half Title
• Title
• Copyright
• Dedication
• Contents
• Figures, tables, and boxes
• Foreword
• Responsible investment in the 21st century
• Acknowledgments
• Introduction
• Section I: The momentum toward responsible investments
• Section II: Pension fund management, governance and fiduciary considerations
• Section III: Responsible investment approaches and asset allocation
• Section IV: Implementation and measurement
• Conclusion: Renewing the real economy, restoring retirement trust
• Appendix A: Glossary
• Appendix B: Important links
• Appendix C: Responsible investment support organizations
• About the authors
• Index