Proxy voting – from posting votes to investment stewardship

Proxy voting turns greener

Today, most asset managers seek to fulfil their governance responsibilities on an ongoing basis – usually through industry analysis and research, and by holding meetings with investee companies' senior management.

Regulatory developments in the past years – e.g. the Shareholder Rights Directive in Europe, the 2013 Swiss executive pay initiative ("Minder-Initiative") in Switzerland, and the European Union's Sustainable Finance Disclosure Regulation (SFDR) – have shifted asset owners' and asset managers' focus beyond pure asset allocation and title selection. They now consider more environmental, social, and governance (ESG) factors in their pursuit of sustainable investment returns. In fact, recent studies have shown that companies with higher governance scores significantly outperform their peers.

Proxy voting is about to get greener. Investment guidelines are shifting and now require inclusion of more ESG-focused analytics; and there is a realization that value creation goes hand in hand with a strong framework of fiduciary obligation.

Benefit from proxy voting services through investment fund

Credit Suisse Asset Servicing provides services to a wide range of customers. From fully tailored single-investor funds for pension funds or insurance companies, individual investors who want to benefit from specific ESG strategies, to traditional fund investors, a general desire to engage beyond the simple investment is rapidly evolving. Keeping in mind that analyzing the ever-evolving proxy voting topics for a vast number of companies around the globe is a monumental challenge, the opportunity to gain access to modern proxy voting services by investing into funds is very appealing.

Best Practice: Proxy Voting

While proxy voting in collective investment vehicles is considered a standardized best practice approach across a whole range of products, recent developments and change in public sentiment are creating a world with heightened demand for increased flexibility and alignment, individual investment strategies, and fund solutions to reflect the expectations and needs of specific investor groups or fund sponsors.

As funds and asset owners increase their focus on ESG factors, this will require them also to adapt their proxy voting disclosures and guidelines. In line with these developments, asset service providers will have to adapt their proxy voting service offering and give their clients a number of options when voting. They will be able to vote according to their own policies, they can choose third-party proxy voting policies from renowned proxy advisors, or they can continue to rely on Credit Suisse Asset Servicing's continuously evolving stewardship program based on Credit Suisse's ESG research.

As the ESG journey evolves, Credit Suisse is committed to finding relevant solutions within the respective regulatory framework.

Consider personal values in investment funds

Recent studies show that more than 90% of asset managers are looking to transform their investment stewardship approach in the near future. The role of ESG in the investment strategies of key asset owners and investors will increase the pressure on the asset servicing industry to efficiently implement these new requirements and assure a comprehensive and transparent reporting regimen.

It is our commitment to help create greater investor value by transforming stewardship into a more personalized experience and by giving investors the opportunity to choose funds that align with their personal values.