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.
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.
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