9 February 2022
This week we’re talking about something that often goes underappreciated – voting. Voting by asset managers, on behalf of their asset owner clients at company Annual General Meetings (AGMs). We’re talking to the author of an influential research piece benchmarking the voting activity of a huge chunk of the asset management industry, Shareaction’s Sonia Hierzig.
We talk through the reason for doing the research, cover the methodology used, and key findings including the big divide between US and European managers.
- The report: Voting Matters 2021 - Are asset managers using their proxy votes for action
on environmental and social issues?
- The ESG resolutions to watch this AGM season
- The background and reason behind doing the research
- The methodology, why the specific resolutions were selected, how the data was collected, and were there any specific challenges associated with collecting this data?
- Key findings:
1. Manager voting activity, little changed
2. US / Euro split of attitudes and approach
3. Climate voting tends to focus on disclosure not strategy (which is an easier ask)
4. Social votes receive less focus, apart from diversity and inclusions
- Reactions to the work – including any pushbacks or questions on what is the “right” percentage of resolutions to be supporting, is it 100% or something slightly less?
- How Sonia envisages the research being used
- Research priorities for the next year
- Sonia's thoughts on the implementation statements and how these could be improved
What's one thing to take-away?
Asset managers have huge potential to influence but aren’t using it enough. Think about how you can use your influence to make that happen!
The most underappreciated thing about investing
The importance of active ownership in addressing systemic risk.
How to access our podcasts
You can access all our podcasts across all major audio platforms via computer or devices.
Each LCP investment uncut podcast is for information and marketing purposes only and does not constitute any form of investment or financial advice or a financial promotion (under the Financial Services and Markets Act 2000). All views expressed by the podcast hosts and guests are purely their own opinions and do not represent those of LCP, its clients or affiliates. Our podcast listeners should always seek independent financial or legal advice before making any financial or investment decisions. Please refer to the Legal Notices section on the LCP website for further information.