The Central Bank has developed a Code of Responsible Investment for banks, insurers, management companies, NPFs and other institutional investors investing in equity instruments. This is reported on the regulator's website.
The Bank of Russia proposes to adhere to a number of principles that will increase the profitability of investments not only through effective management of the securities portfolio, but also through active interaction with issuers.
The Code requires institutional investors to participate more actively in the life of issuers in order to improve the long—term prospects of companies, primarily to increase their shareholder value.
When investing, "institutionals" should pay attention primarily to companies that have adopted a strategy to increase shareholder value. If there is no such document, investors can exercise their corporate rights and encourage the issuer to develop it, the document prescribes.
Those who adhere to the code should publicly report annually on the implementation of these principles.
