Governance in Funds
The establishment and successful operation of its specialised listed and unlisted focused investment vehicles ("Funds") is fundamental to Babcock & Brown's business model. A key element to the success of these funds is the access of the funds to the skills of the Babcock & Brown group and in particular to transactions initiated by Babcock & Brown. Babcock & Brown recognises that effective and transparent governance practices within the funds is essential to the protection of investors' and other stakeholders' interests and the success of the funds.
To this end, Babcock & Brown has developed a robust corporate governance framework containing a number of key principles for the governance of the funds managed by it with a view to ensuring the protection of the interests of the investors and other stakeholders in those funds. These principles were reviewed during the year and will continue to be expanded and refined to meet the Group's goal of operating its managed funds in accordance with sound and prudent business practices.
Babcock & Brown has adopted an externally managed model as a basis for the administration of the Funds it has established, whereby each Fund will appoint a wholly owned subsidiary of Babcock & Brown as Manager and/or Investment Adviser ("Manager") of the Fund under a long term Management and/or Investment Advisory Agreement ("Management Agreement").
Further information on the Governance in Funds can be found in the annual report. Please click here to access Babcock & Brown Limited's latest Annual Report.