Insight voting data
Voting is an important mechanism for holding companies to account. In situations where we may abstain or vote against management, the voting decision will be reviewed by the relevant portfolio manager and the final decision will account for Insight’s general position on the issue in question, for the specific details and context of the business, and for Insight’s views on whether and how the voting decision will be interpreted by company management.
Beyond the specific issues covered by our voting template, we generally consider any action that raises accountability for environmental and social activities to be positive for shareholders. For these actions – for example, the “Aiming for A” resolutions on climate change – Insight generally supports resolutions of this type if they are appropriately structured. We do not notify companies in advance of our voting intentions.
Specialist equities funds – voting on management resolutions in 2017
Insight’s flagship multi-asset approach, the Insight broad opportunities strategy, dynamically invests across a wide range of asset classes.
The strategy seeks to generate long-term capital growth through a dynamic asset allocation strategy involving several asset classes (including equities, fixed income securities as well as commodities and property), primarily through investments in financial derivative instruments, in direct holdings and in collective investment schemes.
- Fixed income: ESG considerations arise indirectly through actively managed fixed income pooled funds managed by Insight that the strategy may have exposure to. ESG considerations are a key element of the research process underlying fundamental corporate bond evaluation processes.
- Derivatives: Financial derivatives employed in the strategy provide indirect exposure to broad market indices within equities, fixed income, commodity and currency, resulting in no direct ESG considerations for the majority of the portfolio.
- Real assets: As part of its real assets exposure, the strategy invests in listed closed-end investment companies with a focus on cash generative investments in social infrastructure, renewable energy and asset-backed aviation finance. We maintain regular contact with the companies as part of our ongoing monitoring and portfolio management. We also vote on our shareholdings which typically cover routine matters such as adoption of reports and accounts, appointment of auditors, election of members of the board and changes to capital base.
Multi-asset holdings – voting on shareholder resolutions in 2017
Key focus: closer look at remuneration
Insight believes executive remuneration must balance long and short-term performance considerations. An effective and clear policy, along with an independent remuneration committee, is essential to ensure remuneration is aligned with and commensurate with performance.
Voting on remuneration in 2017
The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate fluctuations). Investors may not get back the amount invested. Past performance is not a guide to future performance.
Derivatives may be used to generate returns as well as to reduce costs and/or the overall risk of the portfolio. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
Investments in bonds are affected by interest rates and inflation trends which may affect the value of the portfolio.
The investment manager may invest in instruments which can be difficult to sell when markets are stressed.
While efforts will be made to eliminate potential inequalities between shareholders in a pooled fund through the performance fee calculation methodology, there may be occasions where a shareholder may pay a performance fee for which they have not received a commensurate benefit.
Property assets are inherently less liquid and more difficult to sell than other assets. The valuation of physical property is a matter of the valuer's judgement rather than fact.