CFA: Engagement and stewardship

Explanations, applications and practice for engagement and stewardship.

• Bondholder and shareholder engagement: different instruments, different levers

  Compare the role of equity rights and debt terms in an issuer dialogue.

  Comparisons

• Universal owners and market-wide risk

  Understand why a diversified investor may examine effects beyond one holding.

  Concepts

• UK Stewardship Code 2026: reporting structure and a learning case

  Distinguish the current Code’s reporting parts from an engagement activity log.

  Exam guides

• Designing engagement objectives and escalation decisions

  Build an objective, evidence trail and conditional next action for an issuer dialogue.

  Lessons

• Material nonpublic information during an engagement meeting

  Identify the information-handling issue before making a trading recommendation.

  Common mistakes
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  Engagement objective log

  Download an editable CSV for requests, evidence, status and follow-up decisions.

  Templates

• Calculating a collaborative engagement group’s aggregate stake

  Add holdings with a matching denominator and test a stated participation condition.

  Worked examples

• An engagement free-rider incentive: a simple payoff example

  Compare an investor’s share of a common benefit with the cost it bears alone.

  Worked examples

• Calculating an engagement outcome rate with a clear denominator

  Calculate resolved, escalated and ongoing shares without conflating them.

  Worked examples