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Principal Global Investors

PRI reporting framework 2018

Export Public Responses

You are in Direct - Listed Equity Active Ownership » 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

The engagement policy is derived from the investment process. Engagement is not a central tenet of our research process, as we tend not to own stocks if we have fundamental concerns about any aspect of the investment case. However, if concerns do arise on existing holdings, we will engage management to monitor ESG issues.

01.6. Additional information [optional]

In a typical year, we conduct more than 2,500 discussions with corporate management teams for both current and prospective investments; however, our investment philosophy does not place particular emphasis on investor activism. We will tend to simply avoid or sell any stock where we have fundamental concerns about any aspect of the investment case, which could include ESG factors.

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
          Proxy Voting

02.2. Additional information. [Optional]

From a quantitative perspective, our proprietary investment research platform will indicate any outlying factors, ESG or other, that could require engagement with a company.  From a fundamental perspective, analysts will raise any concerns about ESG issues, and indeed any other fundamental concerns, during meetings with management with the responses they receive impacting their opinion of the stock’s outlook. Where such concerns are discussed, they are documented by the analysts and stored within our research database.