At Reynders, McVeigh, we believe that being an active investor is not only in our clients’ best interest, it is our responsibility as investors. We take our role seriously, and approach our commitments with diligence that extends across a number of disciplines. Research and experience tells us that companies perform best when they operate with a long-term vision, take a leadership position in their industry, seek opportunities to innovate, and effectively manage risk.
When we invest in a company, though, we also see a pathway to be involved in its growth on multiple levels. Shareholder engagement is one element that opens up an additional “toolbox” with a variety of methods we can use to pursue results. These include proxy voting, submitting shareholder proposals, participating in industry peer groups and networks, hosting round tables to foster dialogue within our community, and engaging companies directly.
According to Ernst & Young’s 2018 proxy season preview, investors are increasingly engaging with companies to strengthen and protect their holdings for the long-term. The same report found that among investors’ top five priorities are board composition, with particular focus on enhanced diversity; increased attention to climate risk and the environment; and enhanced attention to talent and human capital.
Such topics are at the core of our investment philosophy, as they reveal what we like to refer to as companies’ “DNA.” They tell a story about how management thinks and how companies can be positioned to provide solutions to current and future challenges – from both a business and societal perspective.
As we progress through the 2018 proxy season, we look forward to continuing a dialogue with the companies we have engaged and collaborating with others to achieve goals that we believe will benefit our investors, the management and employees of companies we hold, the environment, end consumers, and the communities in which our portfolio companies operate.
If you are interested in learning more about our shareholder engagement work and our holistic approach to investing, please contact us directly.
DISCLOSURE: This material (published March 2018) does not constitute investment advice. Certain statements may be deemed forward-looking, but any such statements are not guarantees of any future results and actual results or developments may differ materially from those discussed.