Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a735435

Why do discretionaries abstain from shareholder votes?

by Danielle Levy on Feb 26, 2014 at 11:29

Rathbones appears to take a more active approach, voting on clients’ behalf as part of a company-wide policy.

This is driven by a corporate governance committee, which is chaired by a senior director, while the firm also gets input from a shareholder consultancy.

‘We have a policy of voting on all major holdings that we have in the UK market. Where we hold over a certain threshold of a certain company we will vote on those. If there is an issue that a client has, they are always entitled to come back and make their own statement. It is their shareholding. In the absence of that we will follow our policy,’ said Paul Chavasse (pictured), head of investment management at Rathbones.

The firm’s ethical arm, Rathbone Greenbank, also has the scope to engage with companies over clients’ specific issues.

‘We certainly take a view that we are stewards of our clients’ investments and where possible we should engage and vote. It is part of being a shareholder and part of our responsibilities,’ Chavasse said.

Manager autonomy

Redmayne-Bentley allows its discretionary managers to vote if they wish but said this is not something that is done frequently. The firm provides an online service for shareholder voting for positions held in its nominee service and offers clients the opportunity to attend meetings if they wish, although there is a small charge for this.

‘As we are a bespoke investment management firm, each situation will be assessed individually and it will be down to the investment manager as to what action is required. All decisions are made on a case-by-case basis,’ said Redmayne-Bentley stockbroker Lauren Charnley.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Rathbone Brothers PLC (RAT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Close Brothers Group PLC (CBRO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Charles Stanley Group PLC (CAY.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet