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Principal Global Investors

PRI reporting framework 2018

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(Proxy) voting and shareholder resolutions


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:

other description

          The Principal Global Investors proxy voting policy allows for accommodation of individual client guidelines, if desired, while still utilizing the ISS proxy voting service.

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.

Principal Global Investors' guiding principles in performing proxy voting are to make decisions that (i) favor proposals that tend to maximize shareholder value and (ii) are not influenced by conflicts of interest. These principles reflect our belief that sound corporate governance will create a framework within which a company can be managed in the interests of its shareholders. Although governance is one factor in which decisions to invest in a particular company are made, it may not be the primary consideration.

Principal Global Investors understands the importance of voting proxies, however, there may be times when refraining from voting is in the client's best interest such as in share blocking markets or when the cost to the client is higher than the benefit. In these situations, Principal Global Investors will vote on a best-efforts basis.

Principal Global Investors has engaged the services of Institutional Shareholder Services ("ISS") and uses the standard voting guidelines of ISS. In certain case-by-case circumstances, we may disagree with the ISS recommendation and vote differently. Principal Global Investors does not file or co-file shareholder resolutions.

ISS' services include objective governance research and analysis. ISS delivers research and vote recommendations 15-20 days prior to the shareholder meeting.


LEA 16. Typical approach to (proxy) voting decisions

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


Based on

          The service provider provides voting recommendations, but we reserve the right to override the recommendation.

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).

Principal Global Investors has two formal overarching proxy voting policies.  One that covers global clients ex-Australia, and one specific to the Australian market.  In addition, we have a Taft-Hartley policy specific to Taft-Hartley fund clients, a Japanese policy, and other policy options that clients may subscribe to, based on ISS ESG voting guidelines.

In addition, a UK-based subsidiary of Principal Global Investors has engaged the services of Broadridge’s ProxyEdge, which integrates the vote recommendations provided by Glass Lewis. Glass Lewis’ UK Guidelines integrate such issues as: Board Diversity, Environmental and Social Risk Oversight, Remuneration, Disclosure, and Capital Management.

16.3. Additional information.[Optional]

Our largest equity boutique also has the ability to provide more targeted proxy policies that focus on Sustainability if a client requests this additional service.


LEA 17. Percentage of voting recommendations reviewed

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

17.1. Of the voting recommendations that your service provider made in the reporting year, indicate the percentage reviewed by your organisation, giving reasons.

Percentage of voting recommendations your organisation reviewed

Reasons for review

other description

          Significant issues that would affect the value of the security or where we disagree with the analysis of the service provider.

17.2. Additional information [Optional]

LEA 18. Confirmation of votes (Private)

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]

Our service provider, ISS, provides companies the opportunity to review a draft of their vote recommendation analysis for fact-checking purposes.  This includes analysis and recommendations on Management and Shareholder proposals.  Principal Global Investors is also provided a report summarizing the proposals and recommendations prior to the company meeting date, which includes a Company Governance risk score.

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%)

99 %

Specify the basis on which this percentage is calculated

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

21.3. Additional information. [Optional]

Ballots may not be voted due to a number of reasons including, but not limited to, restrictions for share blocking countries, restrictions on foreigner's ability to exercise votes, requirements to vote in person, requirements to provide local agents with power of attorney to facilitate the voting instructions, and untimely notice of shareholder meeting. Therefore, some meetings were not voted.

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
90 %
Against (opposing) management recommendations
10 %
0 %

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

          We generally follow recommendation of our service provider so would follow their guidance on these issues.

22.4. Additional information. [Optional]

We generally follow recommendation of our service provider so would follow their guidance on these issues.

LEA 23. Shareholder resolutions (Private)

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