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Loomis, Sayles & Company, L.P.

PRI reporting framework 2018

Export Public Responses

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Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

The reduced investment universe depends on specific client guidelines as to what is required to be excluded from the starting investment universe.

Specify the percentage reduction (+/- 5%)


Select which of these effects followed your ESG integration:

12.2. Additional information.[Optional]

The factors which fall under the rubric of ESG are taken into account in our fundamental analysis, and consequently have historically impacted (and continue to impact) our investment decision making process.

LEI 13. Measurement of financial and ESG outcomes of ESG incorporation (Not Completed)

LEI 14. Examples of ESG issues that affected your investment view / performance

14.1. Provide examples of ESG issues that affected your investment view and/or performance during the reporting year.

ESG issue and explanation

Topic:  Governance – proxy voting re: class shares

In addition to ongoing discussions about corporate governance with a cable company, we engaged with the issuer last year with regard to the super voting Class B stock held by the chairman and CEO, resulting in a significant holding in the company stock.  In response to a shareholder proposal on the annual proxy to eliminate the super voting stock, the company explained that it believes that the dual class voting structure helps maintain long-term stability and supports policies that promote shareholder returns. We agreed that, the super voting stock notwithstanding, the governance structure was effective and could help the management team generate long-term shareholder value.

Impact on investment decision or performance

It supported our decision to continue to hold the stock.

ESG issue and explanation

Topic:  Governance – proxy vote 

We recently engaged with a telecommunications company's executive team to discuss its recent hostile bid for a competitor.  We discussed board composition, its country of domicile (and its proposed re-domiciliation of the corporation), and changes to strategic customer relationships.  Although we are somewhat concerned with the hostile bid, and lack of board engagement on the target's behalf, we are awaiting more information from the acquiror on changes to the deal structure and change of domicile.   We also discussed how management and the board would approach global regulatory bodies, legal challenges, and strategic customer relationships, which have been major challenges for the target in the past.  While the acquiror's approach could lead to a significant reduction in these risks, the acquisition may not be in the best interests of long term value creation.  


Impact on investment decision or performance

The proxy vote is pending.  We have determined to continue to hold the securities.  We are monitoring the deal structure and the pricing of the acquisition.

14.2. Additional information.[Optional]