We implement our Responsible Investment Policy through research, engagement and voting.
Responsible Investment Committee
Henderson has a Responsible Investment Committee which oversees and reviews the implementation of the Responsible Investment Policy and any other related corporate governance and responsible investment matters within Henderson that may arise. The Committee is composed of representatives of the various fund management teams within Henderson Investment Management, corporate responsibility personnel and corporate governance personnel.
The Committee is responsible for evaluating the effectiveness of our corporate governance and corporate responsibility work in influencing companies and generating analysis of value to our investment decision-making.
Company monitoring
Henderson's fund managers, sector analysts, ESG and corporate governance personnel maintain regular dialogue with companies. This dialogue allows us to monitor the development of companies' businesses, including areas such as overall strategy, business planning and delivery of objectives, capital structure, proposed acquisitions or disposals, corporate responsibility and corporate governance. In addition, we frequently engage with stakeholders such as NGOs, trade unions and other groups, to enhance our own views on company performance. We subscribe to research covering corporate governance and corporate responsibility issues, to supplement our in-house analysis.
Analysis is shared on internal IT systems and frequent discussion takes place between governance, ESG and sector analysts and fund managers. We keep electronic records of all our engagement, voting and other corporate governance and corporate responsibility activities, including the rationale for voting decisions.
Overall responsibility for monitoring company performance rests with portfolio managers. Analysts specialising in corporate governance and corporate responsibility issues work alongside portfolio managers to identify relevant issues, which are fed into our investment process, and may also form the basis for company engagement.
Engagement
We take an active approach to communicating our views to companies and seeking improvements where we believe there are shortcomings in performance, or a company has failed to apply appropriate standards, or to provide adequate disclosure. We will continue our dialogue with the company over an extended period if necessary. Escalation of our engagement activities will depend upon the company's individual circumstances. Actions may include communications through the company's brokers, direct engagement with the chairman or non-executive directors or joint intervention with other shareholders, and where appropriate, voting against board proposals.
Voting
We exercise voting rights on behalf of clients at meetings of all UK companies in which we have a holding. Outside of the UK, we vote according to client and fund manager priorities. Where we have taken a decision not to support a management proposal we will, where practicable, seek to raise the issues with the company prior to voting.
At Henderson we take an active interest in the corporate governance of companies in which we invest. We believe that voting at general meetings is an important aspect of corporate stewardship and a means of signaling shareholder views on board policy, practices and performance.
When assessing board resolutions, our voting recommendations are guided by the best interests of shareholders. Where we have taken a decision not to support board proposals, we take an active approach to informing the company of our intentions and the rationale for our decision prior to voting.
The Voting Reports below set out our house view on issues where we did not support a company's management. This shows how we voted on behalf of the retail (i.e. individual) clients who invest in our unit trusts. Some of our institutional clients follow this house view, while others give us specific voting instructions according to their own policy. The vote recommendations and rationale expressed in the Voting Reports therefore do not necessarily reflect how a specific institutional client's shares were voted.
We exercise voting rights on behalf of clients at meetings of all UK companies in which we have a holding. Outside of the UK, we vote according to client and fund manager priorities. Where we have taken a decision not to support a management proposal we will, where practicable, seek to raise the issues with the company prior to voting.
The views expressed are the opinion of Henderson Global Investors and reflects the way Henderson acted based on available information. It should not be relied upon for any other purpose.