How Allan Gray’s Orbis Investment Advisory fell into disfavour
An Allan Gray company has been censured because of its stake in a firm with alleged governance issues
Orbis Investment Advisory, part of the Bermuda-based investment manager established by Allan Gray in 1989, has incurred the wrath of one of its clients because of governance concerns.Australia-based First Super, which oversees the funds of 45,000 workers, placed its investment with Orbis on watch due to Orbis’s holding in US-listed freight and logistics company XPO Logistics. First Super reckons XPO is exposed to legal, regulatory and reputational risk in North America and Europe due to allegations of labour law and occupational health and safety violations. Orbis is the single largest investor in XPO, with a 23% stake, so it is well placed to exert a positive influence on XPO. But, says First Super CEO Bill Watson, Orbis has ignored its concerns and has not only voted against a shareholder resolution that would have split the role of XPO chair from CEO, but also "against shareholder proposals calling for sustainability reporting and policies to strengthen the prevention of workplac...
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