We believe monitoring and engagement are an essential part of being a shareholder in a company. It allows us to improve our understanding of investee companies and their governance structures, so that our voting decisions may be better informed and allows us to understand to what extent companies have identified material ESG risks and how they are managing these. The materiality and immediacy of a given issue will generally determine the level of our engagement.
To identify areas in which there are concerns we use a range of resources - our own fundamental research, ESG-specific research, research by investment banks and external governance specialists.
The main objectives of our engagement activities are:
to enhance our conviction in investee companies
to understand management incentives
to identify and share best practice
to improve corporate practice
ultimately to seek improved outcomes for all stakeholders
Our practice is to engage not only with the management of companies but also with a raft of other stakeholders for each particular business. These include government agencies focusing on areas that are material to a particular region or company.
Our engagements are recorded on our research portal and shared across the investment team.