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Passive Doesn’t Mean Inactive
It’s shareholder meeting season – and passive investors are having their say.
Index strategies are now a mainstay in many institutional portfolios, but a passive approach to some allocations doesn’t leave investors without a voice at shareholder meetings of the underlying companies.
Voting and engagement at annual meetings are two key levers that global asset managers – passive or active – can pull to create long-term value for their investors. Passive management is a long-term management style, and provides a solid foundation for managers such as Lyxor to build strong relationship with companies and improve business practices.
As the 2019 voting season has unfolded, a few trends have emerged: Executive pay is a recurring and highly sensitive topic at shareholder gatherings. A second trend is investor activism in Europe, particularly in France, and the emergence of new, far more vocal activists. Yet another trend is the importance of climate change, and the emergence of additional non-financial topics being discussed, such as a company’s raison d'être.
Lyxor’s Head of SRI explains how passive activism at shareholder meetings can be a powerful lever for change.
FOR PROFESSIONAL CLIENTS ONLY. CAPITAL AT RISK.
This communication is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to email@example.com.
Except for the United-Kingdom, where this communication is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658, this communication is issued by Lyxor International Asset Management (LIAM), a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2014/91/EU) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).