Voting is an integral part of QUAERO CAPITAL’s engagement strategy, which is why we aim to vote 100% of the time.
A Fiduciary Duty to our Investors
We consider voting part of our fiduciary duty to our investors, and vote in accordance with clients best interests. Proxy voting, and the analysis of corporate governance issues in particular, are important elements of the portfolio management services. Our voting is executed by the relevant investment teams, with the support of the guidelines and the ESG analyst. We intend to publish our annual voting record each year, to offer full transparency to our investors.
We pay particularly attention to the following items:
- Financial statements & Audit approval. QUAERO CAPITAL will approve accounts so long as there is no reason to question their reliability. QUAERO CAPITAL will vote to approve auditors when we regard them as independent.
- Board of Directors. QUAERO CAPITAL supports resolutions that promote the effectiveness of boards in acting in the best interest of shareholders. This includes consideration of independence, experience, diversity and aligned interests.
- Executive compensation. QUAERO CAPITAL supports compensations packages that ensure alignment of interest between the executives and shareholders. Performance incentives should be long-term in nature and should include equity allocation. Compensation packages considered excessive will not be supported.
- Share issuance. QUAERO CAPITAL will vote according to the interest of current shareholders and will look to avoid risk of dilution of shares. There may be instances where share issuance is beneficial, when used for employee incentives for example. QUAERO CAPITAL will review each situation on a case-by-case basis.
- Mergers & Acquisitions. QUAERO CAPITAL will review each situation on a case-by-case basis, considering strategic, financial and governance risks and benefits associated with the transaction.
- Environmental and Social issues. Where it aligns with the best interests of shareholders, QUAERO CAPITAL will vote to encourage companies to increase transparency regarding their environmental and social policies and impacts.