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Martin Currie Investment Management

PRI reporting framework 2018

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

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

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.

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
          As an opportunity deepen our knowledge and learn more about the particular topics
        
Service provider engagements

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

As stewards of our clients capital effective engagement is a key part of our role as responsible investors for these clients.  As such we believe that engagement led by the portfolio managers and analysts, either via private or collaborative engagements, is the most effective way to persue this rather than outsourcing this to an external provider.   

02.2. Additional information. [Optional]

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, and allows us to understand to what extent companies have identified material ESG risks and how they are managing these risks.  It also ensures that our voting decisions may be better informed. The materiality and immediacy of a given issue will generally determine the level of our engagement.

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
 • ultimately to improve corporate practice

Our practice is to engage not only with the management of companies but also with other stakeholders for a particular business. These include government agencies focusing on areas that are material to a particular region or company.

Members of our investment team hold regular meetings with the management of the companies in which we invest to discuss strategy, sustainability and performance, and to review management processes against the principles and best practice.
At a minimum we would expect companies to comply with the accepted corporate governance standard in their domestic market or to explain why doing so is not in the interest of shareholders. We believe that well-managed companies will report on material social and environmental risks and opportunities and explain how these are managed. As these are often not voting issues, we may engage directly with the company management or board where we believe there is the potential for a material impact on shareholder returns.
We adopt a case-by-case approach to engaging on material governance, environmental or social issues. We will engage with management in an appropriate manner and make a record of this engagement - this may be by conference call, letter or by seeking access to the board chair or directors.
We also aim to participate in collaborative engagement where appropriate.
In most cases a robust private dialogue with executive management, non-executive directors and company advisors is our preferred way to protect our clients' interests. We will also engage with the chairman of the board or the Senior Independent Director where appropriate.

 


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