Shareholder Rights Directive Engagement Policy

The Society takes its responsibility as an investor seriously. In considering how to invest, we are careful to identify the policyholder benefits that we have to meet from our investments. We think about the type of benefits, when they might be due and how much is involved. We appoint professional investment managers to deal with the matters that require expertise, practical experience and infrastructure. We make sure that our arrangement with our chosen investment managers does not lead to any incentives that lead to behaviour that is not in the Society’s best interests.

The majority of the Society’s assets are managed by LGT Vestra. We chose this firm following a competitive tender and a rigorous selection process. We considered a number of factors including the quality of stewardship.

We have considered LGT Vestra’s Stewardship Policy. We think that this policy describes appropriate shareholder engagement, as far as our investments are concerned.

In particular, the Stewardship Policy describes how LGT Vestra monitors investee companies on strategy, financial and non-financial performance and risk, capital structure, corporate governance and social and environmental impact. It describes how LGT Vestra, on behalf of clients like us, talks to investee companies, exercises voting and other rights that come with share ownership, cooperates with other shareholders, communicates with relevant stakeholders of the investee companies and manages conflicts of interest.

We have given LGT Vestra detailed instructions about how to manage our assets. LGT Vestra has no performance fee or other incentive. Its performance is considered regularly, including portfolio turnover costs. Our agreement is subject to three months’ notice.

Unit Linked Assets

The Society’s unit-linked assets are managed by Tilney according to a mandate that has been in place for over a decade.

The Society has considered Tilney’s Shareholder Rights Directive Engagement Policy and is satisfied that it describes appropriate shareholder engagement as far as the Society’s investment strategy for these assets is concerned. Performance is considered regularly, including portfolio turnover costs. The agreement is subject to three months’ notice.

Investment Performance Oversight

The Investment Committee of the Society is responsible for monitoring performance of LGT Vestra and Tilney. It ensures that the investment aims and objectives are being met and that the manager is following the instructions provided. 

The Investment Committee duties and responsibilities are contained in the Terms of Reference, which are can be found here.

If you have any questions about this policy or how the Society discharges its obligations, please contact us at Company.Secretary@holloway.co.uk

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