Good governance is about aligning the objectives of company management with those of the shareholders. The investment management businesses of HSBC regard encouraging such good governance as part of our service to our clients. We invest in, and engage with, companies committed to delivering sustainable long-term returns, even if this means that some short-term opportunities are sacrificed. Such companies are likely to have values focused on stewardship, take account of their broader impact on society, and avoid excessive risk-taking.
Through our particular style of constructive engagement with corporates, we believe that we can add value to the investment process. Because of its importance in this respect, our governance approach is therefore integrated with our stock decision-making through liaison between our specialist governance team and, our fund managers and investment analysts.
We can vote for our clients based on our guidelines. We generally provide full details on our voting and engagement activity on their behalf as part of our standard reporting package. Alternatively, if a client has their own guidelines which would generate clear instructions on all resolutions concerning their portfolio holdings, we can operate a vote execution-only service.
Corporate Governance Team,
HSBC Global Asset Management (UK) Limited,
2nd Floor, 78 St James's Street,
London SW1A 1LF