We recognise a fiduciary responsibility for the oversight of companies in which we have invested on behalf of clients. Engagement is a core element of our stewardship activities; it improves our understanding of investee companies, allows us to signal support for / concern with management actions, and promotes market good practice. These activities seek to enhance long term value for shareholders and protect client assets.
Our stewardship responsibilities apply to holdings in both active and passive funds. For active equity funds, ESG issues are raised by fund managers and analysts in the course of their dialogue with companies to the extent relevant to the investment thesis. By monitoring and engaging with companies held in our passive funds we pursue benefits for the companies concerned and for the market as a whole. We apply the same engagement approach to other asset classes as appropriate.
We focus on engagement with investee companies but may also engage with stakeholders, regulators, industry partners and academics to inform standards and practices that will benefit the long-term interest of our funds.