Disruptive technologies can transform the way whole sectors do business – think of how digital photography has replaced film photography. And many now believe the fund management industry is ripe to such change. Partly as a reaction to the global financial crisis and concerns regarding the short-termism of “casino capitalism”, there is growing demand for “active ownership” where investment managers engage with company management to ensure sustainable business success. Take Temasek, the $122bn Sovereign Wealth Fund for the Island of Singapore as an example. Until recently, it saw wealth creation as unrelated to governance: just seven years ago the Australian Financial Review reported Temasek’s chairman as saying that it had little infl uence as a shareholder. But having suffered losses for the fi rst time in 34 years, and attracting considerable domestic criticism, Temasek now has an explicit commitment to being an active shareholder to foster growth for a sustainable future. More…

Source: AXA Investment Managers