The capital markets are a crucial source of financing of any country’s sustainable development. The crisis of the international financial market in 2008 has given rise to intense debates about the best ways to prevent events that significantly impact on the real economy. The answer has always been there: in the people and in the several incentives and factors that motivate them. What players would have more propriety, power and duty of taking care of sustainable returns adjusted to the risks? The institutional investors – whether fund managers or pension funds. They are the ones with the largest participation in the different market segments (shares, debentures, derivatives, receivables investment funds, etc). Accordingly, due to their size and relevance, institutional investors should play a central role in defending the sustainability of the financial market.
To gain confidence, one needs to demonstrate responsibility. Seven years after the crisis peak, one of the most solid diagnoses is that structural gaps in the fullfilment of institutional investors’ responsibilities open space to several types of collapses: financial, environmental, reputational and social collapses.
The role of institutional investors cannot be separated from the fiduciary duties they assume when they become responsible for managing funds on behalf of a group of people. They are the stewards of third parties’ funds. What means they “take care” of the securities, that is, the assets that are addressed in this AMEC Code. The AMEC Stewardship Code, which comprises a set of principles and guidance about the best ways to fulfill fiduciary duties, is necessary because of the crucial role played by the institutional investors.