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Stewardship Code

At Kenanga Investors, we believe that the continuous delivery of consistent top performance stems from the premise of an effective stewardship and active ownership approach throughout the investment value chain. In search of long term value accretive investments, we aim to influence investee companies as shareholders through the promotion of responsible and sustainable practices.

As a sign of our intent and commitment, Kenanga Investors had on 2 October 2017 became a signatory to the Malaysian Code for Institutional Investors (“Code”). In adhering to our obligation as a signatory, we have developed practices to support the Code and internalize the principles throughout the entire investment value chain.

Identification

Incorporating business sustainability and its corporate gorvernance practices into stock selection criteria


In our bottom up stock picking efforts, our fund managers meet with the management as part of identifying investment targets. Aside from analyzing companies based on fundamentals and value creation matrices, we also incorporate business sustainability and its corporate governance practices as part of the selection criteria. These criteria are critical in forming a sustainable long term conviction on investee companies and we believe that adopting a responsible investment approach will lead to greater success in our investment decisions.

Active Ownership

Post investment, an active ownership approach is adopted to closely monitor business and financial performance, corporate governance, strategy, capital structure and risk management. Close contact is maintained through private engagements with the investee companies where issues or concerns raised for clarification or resolution towards the continuity of the investor-investee relationship. We firmly view stewardship of the investment assets entrusted to us as our responsibility on behalf of the asset owners.

Voting

We view voting at shareholder meetings as an integral part of the investment process. We consider the long term sustainable impact in exercising our voting rights on substantially held investee companies and material resolutions. These resolutions are regularly and actively discussed within the investment team towards a consensus. From time to time, we employ services of third party proxy representatives in delivering our voting decisions effectively at shareholder meetings.

As an investment manager, Kenanga Investors plays a role in shaping markets it invests in. We foresee the impact of regular stewardship practices in these markets will create awareness and maturity of investors as well as investee companies. To this point, we take pride in being part of this change towards achieving sustainable and consistent returns

For queries on our stewardship activities, please write to [email protected]

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