At Proxy View we believe that issuers’ corporate governance policies and practices are correlated with their ability to deliver sustainable returns.
KING IV, which all issuers have to comply with from 1 April 2017, has adopted the “comply and explain” approach, seeking a more qualitative approach regarding compliance and disclosures.
The ownership of JSE-listed securities is dominated by institutional investors such as pension funds and mutual funds. These funds are in turn managed by asset managers, both locally and internationally–based. One of the contributing factors to the global financial crisis of 10 years ago was shareholders’ lack of engagement in holding issuers accountable for their actions. This was certainly true for financial sector players, but also in respect of issuers in other sectors such as manufacturing and service-oriented operators.
The stewardship role which we believe investors can and should play, is to hold the boards of issuers accountable for their actions. Issuer engagement by South African asset managers and institutional investors is largely still non-existent.
We intend to change this.
We will however at all times undertake this in a responsible manner and confirm that we subscribe to the principles of:
- the Code for Responsible Investment in SA (CRISA);
- the UK Stewardship Code released in 2010 by the Financial Reporting Council, as an important focus area to strengthen effective relationships between issuers and their share-owners;
- the ‘Best Practice Principles for Providers of Shareholder Voting Research & Analysis’, published in March 2014 by a group of proxy voting advisory firms in the UK and Europe, following an investigation by the European Securities and Markets Authority (ESMA) in 2013.
We strongly believe that organisations providing proxy services on ownership issues should be transparent and accountable for the proxy voting advice offered to clients.
Our proxy advisory services comprise 3 research reports which we publish, being our Voting Paper, Compensation Paper and the Core Report which are listed on this website prior to an issuer’s AGM taking place.
You can also obtain copies of past voting sheets , if not available on our website anymore, by writing to us.