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Nikko AM Australian Equities

PRI reporting framework 2018

You are in Direct - Listed Equity Active Ownership » Engagement

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. Attach or provide a URL to your engagement policy.

01.3. Indicate what your engagement policy covers:

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

Nikko AM Australian Equities has a long history of engaging with companies held in portfolios, with the objectives being to improve company value, further the understanding of the company and its environment, to improve the management of ESG issues and improve disclosure of ESG issues. Analysts and portfolio managers regularly meet with senior management and members of the Board.

For all companies held in portfolios, analysts are required to attempt to engage with both senior management and the Board. Analysts are responsible for company engagement as they have expert knowledge of the company and are best positioned to promote the interests of shareholders and investors. The analysts can utilise their knowledge to influence companies to improve performance including improving the company’s performance on ESG issues.

01.6. Additional information [optional]


LEA 02. Reasoning for interaction on ESG issues

02.1. Indicate the method of engagement, giving reasons for the interaction.

Type of engagement Reason for interaction
Individual/Internal staff engagements
Collaborative engagements
Service provider engagements

Please specify why your organisation does not engage via service providers.

We have not found service providers to have sufficient understanding to add anything to our own efforts.

02.2. Additional information. [Optional]


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

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

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]

It is an ongoing responsibility of the stock analyst to engage management as part of their task of valuing the stock. Where we have a holding we engage the Board, particularly where there are material issues in the shareholder resolutions, or where there is particular governance risk.


LEA 04. Objectives for engagement activities

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

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take during and following your engagements activities carried out by internal staff.

04.3. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.4. Additional information. [Optional]


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

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

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements.

05.3. Additional information [Optional]


LEA 06. Objectives for engagement activities

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

06.1. Indicate if you define specific objectives for your engagement activities carried out collaboratively.

06.2. Indicate if you monitor the actions companies take during and following your collaborative engagements.

06.3. Indicate if you do any of the following to monitor and evaluate the progress of your collaborative engagement activities.

06.4. Additional information. [Optional]

Collaborative engagement is rare and depends on the specific circumstances and the availability of a willing partner with similar aims and views.


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement Insights shared
Individual/Internal staff engagements
Collaborative engagements

09.2. Additional information. [Optional]

Results of engagements are reported to the whole investment team, and any effect on the valuation is also reported.


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of your engagement activities.

Type of engagement Tracking engagements
Individual / Internal staff engagements
Collaborative engagements

10.2. Additional information. [OPTIONAL]

We engage with the majority of companies we can invest in at a management level. For those companies we invest in, we have a high proportion of engagement with the Board.


Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort (Private)


LEA 12. Engagement methods (Private)


LEA 13. Companies changing practices / behaviour following engagement (Private)


LEA 14. Examples of ESG engagements (Private)


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