We believe good governance adds value to investment programs and that this is especially true during market corrections and crises. This paper evaluates how large, diversified asset owners are applying their governance policies to the current pandemic-driven crisis associated with COVID-19. Our thesis is that leading asset owners are finding ways to pursue attractive risk-adjusted investment returns, while also taking investment actions to help mitigate and address the impact of the pandemic.
Specifically, the World Economic Forum and Mercer recently completed the first part of a multi-year investigation1 into investment and governance practices regarding global systemic risks. The framework created during this investigation can be applied to the COVID-19 pandemic.
Governance Considerations to Navigate a Market Crisis