Introduction to Institutional Investor Fiduciary Duties

By Keith L. Johnson on March 27, 2014

This paper explores the importance of guiding legal principles in protecting beneficiaries and society from abuse of delegated investment powers by fiduciary agents.

It argues that countries that can most effectively navigate the transition to modern and sustainable fiduciary investment practices will be able to allocate capital more efficiently, reduce the negative side effects of investment practices and have a long-term competitive advantage in the 21st century. Given the growing economic significance of China's pension funds, the National Social Security Fund and other assets managed by delegated agents on behalf of third-party beneficiaries, this could be an opportune time to establish culturally appropriate fiduciary principles for China. Pension funds in South Africa, the Netherlands, Norway and the United States offer models for the People's Republic of China (PRC) to consider in planning its transition to fiduciary standards and investment practices that support sustainable development.

Report details

Sustainable Finance
Focus area
IISD, 2014