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Nikko AM Australian Equities

PRI reporting framework 2018

You are in Direct - Listed Equity Active Ownership » (Proxy) voting and shareholder resolutions

(Proxy) voting and shareholder resolutions

Overview

LEA 15. Voting policy & approach

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

15.1. Indicate whether your organisation has a formal voting policy.

15.2. Indicate what your voting policy covers:

15.3. Attach or provide a URL to your voting policy. [Optional]

15.4. Provide a brief overview of your organization’s approach to (proxy) voting.

We believe that exercising our entitlement to vote is an important act in fulfilling our fiduciary duty to investors. By voting and interacting with listed company Boards we can positively influence the returns to shareholders. In a broader sense we can encourage better corporate governance and financial decisions by Boards.

As a long-term investor, Nikko AM Limited is focused on the fundamental performance of the corporates in which we invest. By positively influencing corporate governance we can actively improve returns to investors while promoting long-term decision making by Boards and management. Voting is an important tool in promoting long-term corporate decision making.

Nikko AM Limited supports the consideration of Environmental, Social and Governance (ESG) factors by corporates. In the long-term ESG issues can materially affect corporate valuations. By promoting the consideration of ESG factors, Nikko AM Limited aims to positively influence investor returns and corporate decision making. By voting we can improve corporate governance and communicate the importance of ESG factors.


Process

LEA 16. Typical approach to (proxy) voting decisions

16.1. Indicate how you typically make your (proxy) voting decisions.

Approach

Based on

16.2. Provide an overview of how you ensure your voting policy is adhered to, giving details of your approach when exceptions to the policy are made (if applicable).

All proxy voting recommendations are presented to the investment team. Any exceptions to the voting policy must be agreed with the investment team.

Once the voting recommendations are accepted, a confirmation email is sent to all members of the team and the vote is processed.

16.3. Additional information.[Optional]

The primary decision maker is the analyst who is responsible for covering the stock and managing the engagement with the company.


LEA 17. Percentage of voting recommendations reviewed (Not Applicable)


LEA 18. Confirmation of votes

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

18.1. Describe your involvement in any projects to improve the voting trail and/or to obtain vote confirmation .

          We communicate to the company if we have voted against the companies recommendation. We find this improves communication and has led to improvements in corporate behaviour.
        

18.2. Additional information. [OPTIONAL]

          
        

LEA 19. Securities lending programme (Private)


LEA 20. Informing companies of the rationale of abstaining/voting against management

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

20.1. Indicate whether you or the service providers acting on your behalf raise any concerns with companies ahead of voting

20.2. Indicate whether you and/or the service provider(s) acting on your behalf, communicate the rationale to companies, when , you abstain or vote against management recommendations.

20.3. Additional information. [Optional]

We contact the Board to discuss issues that we have voted against.

We encourage regular contact with Boards where we have holdings. This is successful except in rare cases where corporate governance is especially poor.


Outputs and outcomes

LEA 21. Percentage of (proxy) votes cast

21.1. For listed equities where you and/or your service provider have the mandate to issue (proxy) voting instructions, indicate the percentage of votes cast during the reporting year.

Votes cast (to the nearest 1%)

100 %

Specify the basis on which this percentage is calculated

21.2. Explain your reason(s) for not voting certain holdings

          We voted all proxies
        

21.3. Additional information. [Optional]


LEA 22. Proportion of ballot items that were for/against/abstentions

22.1. Indicate if you track the voting instructions that you and/or your service provider on your behalf have issued.

22.2. Of the voting instructions that you and/or third parties on your behalf issued, indicate the proportion of ballot items that were:

Voting instructions
Breakdown as percentage of votes cast
For (supporting) management recommendations
98 %
Against (opposing) management recommendations
2 %
Abstentions
0 %
100%

22.3. Describe the actions you take in relation to voting against management recommendations.

          Communicate with the company the reasons for voting against and pursue further engagement.
        

22.4. Additional information. [Optional]


LEA 23. Shareholder resolutions (Private)


LEA 24. Examples of (proxy) voting activities (Private)


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