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Martin Currie Investment Management

PRI reporting framework 2018

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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]

When looking at ESG factors our focus is always on relevance and materiality. Our frame of reference for identifying issues is our Global Corporate Governance Principles which outlines our approach to corporate governance and what we see as best practice, our Stewardship Code statement and our Responsible Investment Policy. In general, the analyst responsible for the stock will set the priorities for engagement, however our external service providers, for example ISS, Ownership Matters or MSCI will also highlight particular issues that they believe should be focused on. They will again identify issues based on their policy framework and will prioritise based on materiality and immediacy.

Where companies deviate from these principles, fall short of what see as strong practice, there is an opportunity to nudge a company in the right direction or where an issue requires clarification we will look to engage with the board or the management of the company. The materiality and immediacy of a given issue will generally determine the level of our engagement and the priority we will attach to it. There are some common systemic factors that also frame our engagement.  An issue where the impact on the potential value of an investment is large or where the timescale is short will be given high priority.

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.
 


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]

When considering engagement with an investee company we are clear about what we are looking to achieve.

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

As such the approach we take will vary depending on the desired outcome.  Where there is an objective of enhancing our understanding of the structures, motivations or strategy of a company we will not establish defined milestones or goals.

Where we are looking to encourage better corporate practice e.g. improved disclosure or changes to corporate behaviour we will outline our reasoning, set out our expectations and consider what should be an appropriate timeline for resolution.

Our process on tracking engagement is overseen by David Sheasby our Head of Stewardship and ESG.

The investment team meets on a daily basis with a focus on read-across from one company to another - this ensures that lessons learned from any engagement on a particular issue are disseminated quickly and effectively to the broader team. Our internal research portal provides access to all company research and company contact by one analyst for the broader team.


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