Fund managers can and should vote on all stock held globally: it’s good stewardship and an important accountability mechanism. Managers can choose to apply a single set of guidelines across markets.
In our experience, this is easier to implement and to communicate to clients. It provides a definitive set of good governance practice that we think should apply irrespective of location.
Alternatively, fund managers can issue market-by-market guidelines, which although more complex, is not uncommon and does have merits, particularly as it allows for local context.
Whether it’s governance, carbon emissions or human rights, fund managers should be happy and willing to answer questions on these, and other topics as well as having a view on the incoming SDR scheme.
Ita McMahon is partner, investment management, at Castlefield
