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Aussie investors create research arm

July 2007

Eight large institutional investors have combined with Monash University in Melbourne to set up a specialist service provider in governance research and engagement.

The founding companies – Aria, BT, Hermes, Hesta, LGSS, Vanguard, VFMC and VicSuper – which handle investments worth a total of A$350billion ($300bn, £150bn) – have called the organization Regnan, a title based on a Latin word meaning to move in a straight line or to rule.

Erik Mather, Regnan’s managing director, said: ‘The creation of Regnan provides the opportunity for some of the world’s leading institutional investors to work together to improve the environmental, social and governance (ESG) performance of companies and ultimately the performance of their own investments.’

Regnan’s research will enable institutional investors to consider all aspects of a company’s ESG activities. Mather said: ‘We expect that fund managers and other investors will apply the data to their analysis of companies, alongside traditional valuation measures.’

Companies are expected to benefit as collaboration will lead to better dialogue, and shareholders are likely to have greater influence on bringing about improvements in governance.

The ESG research will be done by Monash Sustainability Enterprises, part of Monash, which is Australia’s largest university. MSE has been carrying out research into governance and engagement for more than five years.

Regnan will initially be based in Sydney and Melbourne.



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