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Element Investment Managers

PRI reporting framework 2019

You are in Direct - Listed Equity Active Ownership » (Proxy) voting and shareholder resolutions

(Proxy) voting and shareholder resolutions

LEA 12. Typical approach to (proxy) voting decisions

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

Approach

Based on

12.2. 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.

Voting is done internally by the analyst that covers the particualr company.  All analysts and portfolio managers are well-versed in the detail of our Voting & Proxy Policy and vote accordingly.

The Votes for meetings are distributed to the Investment Team and any Against or unusual votes are explained in detail.

The only exceptions with respect to Voting outside our Policy guidelines has been where we have been instructed by a client to vote in a specific way for a particular resolution.

12.3. Additional information.[Optional]

Exceptions to our voting policy only when we have specifc written instructions from a client determining how we should vote.


LEA 13. Percentage of voting recommendations reviewed (Not Applicable)


LEA 14. Securities lending programme

14.1. Indicate if your organisation has a securities lending programme.

14.2. Describe why your organisation does not lend securities.

Our default option is that securities should not be lent as the recall for voting can be problematic and costly.

Historically we have been instructed by clients to lend their securities (segregated accounts). We requested that they should not exceed a 50% maximum of the shares we hold as above this can compromise normal selling procedures if we were to lighten our holdings in a particular share.

14.4. Additional information.


LEA 15. Informing companies of the rationale of abstaining/voting against management

15.1. Indicate the proportion of votes where you or the service providers acting on your behalf have raised concerns with companies ahead of voting.

15.2. Indicate the reasons for raising your concerns with these companies ahead of voting.

15.3. Additional information. [Optional]

We disclose the reason for all votes against or abstentions publically. In addition, if the vote is material or we wish to link our vote with supporting engagement activity, we will make direct contact with the company secretary or the appropriate executive.


LEA 16. Informing companies of the rationale of abstaining/voting against management

16.1. Indicate the proportion of votes participated in within the reporting year in which, you and/or the service provider(s) acting on your behalf, have communicated to companies the rationale for abstaining or voting against management recommendations.

16.2. Indicate the reasons your organisation would communicate to companies, the rationale for abstaining or voting against management recommendations.

16.3. In cases where your organisation does communicate the rationale for the abstention or the vote against management recommendations, indicate whether this rationale is made public.

16.4. Additional information. [Optional]


LEA 17. Percentage of (proxy) votes cast

17.1. 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%)

100 %

Specify the basis on which this percentage is calculated

17.3. Additional information. [Optional]


LEA 18. Proportion of ballot items that were for/against/abstentions

18.1. Indicate if you track the voting instructions that you and/or your service provider on your behalf have issued.

18.2. 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
70 %
Against (opposing) management recommendations
28 %
Abstentions
2 %
100%

18.3. In cases where your organisation voted against management recommendations, indicate the percentage of companies you have engaged.

18.4. Additional information. [Optional]


LEA 19. Proportion of ballot items that were for/against/abstentions

19.1. Indicate whether your organisation has a formal escalation strategy following unsuccessful voting.

19.2. Indicate the escalation strategies used at your organisation following abstentions and/or votes against management.

19.3. Additional information. [Optional]


LEA 20. Shareholder resolutions

20.1. Indicate if your organisation directly or through a service provider filed or co-filed any ESG shareholder resolutions during the reporting year.

20.6. Describe whether your organisation reviews ESG shareholder resolutions filed by other investors.

Minority shareholders are relatively well protected in South Africa.

 

20.7. Additional information. [Optional]


LEA 21. Examples of (proxy) voting activities

21.1. Provide examples of the (proxy) voting activities that your organisation and/or service provider carried out during the reporting year.

ESG Topic
Executive Remuneration
Conducted by
Objectives

To ensure the Advisory vote on company Remuneration policies is effective.

Scope and Process

Detailed review of company remuneration polices, targets, KPIs, etc.

Outcomes
ESG Topic
Company leadership issues|Diversity
Conducted by
Objectives

Ensuring Board diversity and the necessity of truly independent directors.

Scope and Process

Research the demographics, gender and racial profile of the Board.

Independence of non-execs guided by > 10 year tenure recommendation that independence may be compromised.

Assess competence of board members for specialised committees eg accounting background for Audit committee etc.

Outcomes

21.2. Additional information. [Optional]


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