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HSBC Global Asset Management

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement » Overview


LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

          Escalation process

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

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.

01.5. Additional information [optional]

The outcomes of our engagement activities include but are not limited to:

-               Upholding our commitments to the UN Principles for Responsible Investment and Stewardship Codes in markets where we invest

-               Enhancing the sustainability of returns for investee companies

-               Meeting clients’ expectations of our stewardship activities

-               In depth engagements that effect significant improvements at investee companies

-               A deeper understanding and internal dialogue about how ESG factors impact investment returns.

LEA 02. Reasoning for interaction on ESG issues (Not Completed)