Active ownership is the main way we communicate with the companies we invest in. We exercise our right to influence the company, through attending or voting at the companies’ annual general meetings. We might even put forward shareholder resolutions at the meetings.
Our activities at the annual general meetings can be seen on the Voting Portal.
When we want to improve a company’s management of its ESG risks we start an engagement process with the company. During the process we clearly communicate our engagement goal to the company. We set milestones and review the company’s progress periodically with visits or conference calls. The timeframe of the engagement process can vary depending on the complexity of the engagement goal.
The following is a selection of our engagement cases. Under Engagement updates, more detailed information is provided about current initiatives in terms of engagements.
Engagement summary 2018
In 2018, Nordea held a total of 145 meetings. Around 83% were connected to our ESG analysis (see Stars funds for more information on the analysis). By meeting the majority of the companies that we analyse, we ensure that we get to know them as well as possible. This is of high importance on e.g. emerging markets where companies generally do not yet report as thoroughly as European companies. The map shows a high concentration around Europe and Asia, which is line with the Stars holdings. The sector division is also a reflection of some sectors (consumer discretionary, financials and healthcare) constituting a considerable portion of the Stars funds.
The incident and norms engagements account for approximately 17% of our meetings. This is a result of Nordea ensuring an appropriate course of action when companies in which we have holdings are associated with breaches of international conventions and norms.
Meetings around the world
North America 27%
South America 2%
Nordea Funds believes that active ownership is paramount in creating returns with responsibility. As we are a major owner in many companies, both in the Nordics and globally, we vote at annual general meetings according to our corporate governance principles. We strive for transparency and this voting portal demonstrates our voting, both at the AGMs we physically attend and our proxy voting.
The portal is updated continuously and contains our historical voting since the 2016 season.
Besides voting, Nordea Funds also demonstrates stewardship and active ownership through representation on nomination committees and through dialogue and engagement activities with companies.
To see how we are voting, visit our Voting Portal.
All question related to voting or this portal can be directed to:
Erik Durhan, Head of Corporate Governance – firstname.lastname@example.org