SBIFMPL considers voting to be an important shareholder right and a valuable tool in the engagement process and endeavours to vote on all board resolutions of investee companies, which are critical for protecting and enhancing the investors' interests. Although, the AMC uses proxy voting advisory services from reputed service providers to help analyse company proxy materials and statements, all votes are confirmed in house by the analyst team, in discussion with the portfolio manager/s. These voting decisions and the process undertaken to arrive at the decision is uploaded on the AMC's website.
SBIFMPL has adopted general guidelines for voting proxies which are documented in our Proxy Voting Policy available on our website. Corporate Governance issues are various and continuously evolving. The guideline set are not and cannot be a comprehensive survey of the proxy voting guidelines as all kinds of issues cannot be anticipated. Therefore, the guidelines rather reflect some of the principles that are generally supported by the AMC. However, the AMC may exercise its discretion and act accordingly in some instances when it determines that based on the facts, it is in the best interest of the fund as a shareholder. Once the proxy advisers submit their decisions and the supporting reasons, the investment team analysts study them and provide their inputs on the actual condition of the company and digressing views (if any). The analysts refer to the Guidelines while making any kind of recommendations on the voting decisions. Our proxy advisers have a set methodology, which has been previously discussed with them and is largely aligned with the principles SBIFMPL believes in. Their methodology is publicly available and all the reasons for a particular recommendation are provided by the proxy advisor. In case, SBIFMPL does not agree with any recommendation, we ask for additional details, peer-comparison etc. from the service provider.
At times, we may see a need for making an exception. In such cases, we identify if there is a need to make changes in the proxy voting policy. The exceptions are never made ad-hoc, but are rather principle based, and corresponding changes are made in the Policy to make the framework more robust. The decisions are never based on importance of the company, analyst bias, or in order to accommodate a company. While making an exception, detailed discussions are conducted with the Chief Investment Officer and Head of Research. The resultant recommendations are then sent to the Proxy Voting Committee.