As outlined in our document “Adoption of Italian Stewardship Principles for the Exercise of Administrative and Voting ghts in Listed Companies”:
Before expressing a vote against management resolutions that may have significant effects on the issuer, the Company evaluates - if appropriate and provided that it is not prohibited by law - the hypothesis of initiating forms of engagement with the participating issuer, in the best interest of managed assets.
The Company believes that an effective engagement activity relates to building long-term relations with the board of directors, the board of statutory auditors and the senior management of investee companies, creating an environment in which institutional investors are regarded as credible and committed partners. Therefore, engagement is complementary to both the investment analysis as well as the exercise of voting rights, as it enables the Company to promptly address specific companies’ governance issues, thus preventing a disinvestment or the exercise of a contrary vote.
In the event investees fail to respond constructively, the Company will consider escalating measures, such as:
promoting, as set out in Principle 4, action in concert with other institutional investors – within Assogestioni Investment Managers' Committee - aimed at issuing comments or making specific requests for clarifications on certain issues;
making public statements during shareholder meetings.
In the event the Company considers the outcome of dialogue with investee companies as unsatisfactory, it reserves the right to abstain or vote against certain resolutions at the shareholder meeting.