Why is proxy voting important?

DNR Capital manages investments on behalf of institutional, wholesale (including through SMA platforms and providers) and retail clients. In addition, we are a signatory to the Principles for Responsible Investment (PRI) and, as part of this undertaking, we commit to be active owners.

Although our policy applies predominantly to institutional clients who request that we exercise voting decisions on their behalf, where possible, we will apply a common approach to proxy voting for other wholesale and retail clients. Our ability to do this is, however, dependent on the custodial arrangements in place for these clients and the SMA platforms ability to implement proxy voting decisions.

Guiding principle

The guiding principle when we vote on a resolution is that our voting decision must be in the best interests of our clients. We make decisions on a case-by-case basis after an assessment of the relevant information available and taking into consideration the impact of ESG risks and potential effect on the performance of the portfolio.

Our investment analysts monitor the corporate governance practices of the companies we invest in with the aid of ESG specific data from multiple sources, including third party proxy advisors.

Active ownership

When lodging voting instructions, we are mindful of the following:

  • We will vote where it is possible given the custodial arrangements and votes must cast in the best interests of clients.
  • By investing in a company, we are indicating our support for that company’s board and management. As a result, we will typically vote in a manner consistent with board recommendations.  However, where we consider a resolution is inconsistent with shareholder interests or the ASX corporate governance principles, we will vote against such resolutions. 
  • There may be occasions where we consider it appropriate to abstain from voting for a resolution. 
  • When we exercise voting rights, we ensure that these are duly recorded.