Corporate governance is a set of policies that defines the relationship between stakeholders, management, and the board of directors of a company and influence how that company operates. The Australian Governance Masters Index Fun
d Limited invests only in the best governed top Australian companies within the S&P/ASX 100 Index, as ranked by the Company's corporate governance analysis and third party research. The Company pursues an index style of investing with an active corporate governance bias and expects to hold securities issued by approximately 75 to 85 Australian entities within the S&P/ASX 100 at any time.
The Company believes that boards and management that show relatively high levels of corporate governance tend to outperform relatively poorly governed companies over the long term. The Company also seeks to promote adherence to corporate governance best practice recommendations in its investments by voting its proxies and participating in shareholder meetings.