Quilter Cheviot has called for a far reaching overhaul of governance within the investment trust sector, after its research found some trust boards were failing to take engagement seriously.
During the first phase of its long-term engagement, Quilter Cheviot met with the chairs and other non-executive directors (NEDs) of 41 equity investment trusts. It found most, but not all, boards were open to constructive challenge and discussion. One chair described engagement as "fatuous" when asked about providing more disclosure regarding the manager's approach to engagement. Quilter Cheviot provided each investment trust with a red, amber or green rating on three criteria; board composition, board effectiveness, and disclosures for environmental, social and governance factors. ...
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