In 2019, the voting scope was the following:
- French Funds (Fonds Communs de Placement – FCP), French and Luxembourgish SICAV (*)
- European issuers
- Issuers selection criteria: to prevent excess cost resulting by the voting process, Lyxor votes only where its consolidated holdings represent at least 0.10% of the company‘s equity capital.
* Except the vehicles using a method of synthetic replication which are designed to track a financial exposure through a performance swap. Therefore, the returns of the vehicles do not depend on the return on the shares held by these funds.
The following are the key cases which are excluded from Lyxor’s voting process:
- Voting in countries that require share blocking.
- Voting in markets with excessive administrative burdens/costs.
- Voting on loyalty shares.
- Voting in countries for which custodians used by Lyxor do not offer proxy voting services.
In terms of controls:
1/ LYXOR's proxy advisor send us quarterly some KPIs:
- platform availability
- research statistic
- votes rejected
2/ Each year, the LYXOR SRI Team meet the ISS' teams to ensure that they correctly understand the evolutions of the LYXOR's Voting & Engagement Policy.
3/ LYXOR has set up a quarterly control system to verify the correct application by our proxy advisor of our own voting policy. This sampling control is completed by the analyst in charge of the vote and is validated by the SRI team manager and recorded in the compliance tools of LYXOR.
4/ On a specific scope of issuers, updated quarterly, the LYXOR SRI Team review each item submitted to the vote and if there is a vote not in line with our voting policy, we change manually the votes in the platform.
5/ On remuneration items, the provider does not send recommendation to LYXOR. All the research is made internally through a proprietary methodology.