Proxy Governance and Administration Team
At Invesco, active ownership is an integral part of the investment process. Our engagement approach provides a forum for our investors to engage with issuers and an opportunity for consensus voting. Our patented, proprietary platform allows us to build upon our institutional base of knowledge of the portfolio companies in which we invest and supplies a global platform for active internal diligence.
Invesco’s fund managers champion our high conviction approach and this in turn reflects a purposeful focus to proxy voting. Our active ownership policies and practices include ongoing engagement with corporates, boards, and advisory bodies, on-site due diligence and an internal governance committee as inputs into our investment and proxy voting decisions made at the portfolio level.
To view Invesco's global active ownership, voting and engagement statistics and case studies, please see our 2018 Investment Stewardship & Proxy Voting Annual Report.
Invesco’s Global Policy sets forth the framework of Invesco’s corporate governance approach, broad philosophy and guiding principles that inform the proxy voting practices of Invesco’s investment teams around the world. Given the different nature of these teams and their respective investment processes, as well as the significant differences in regulatory regimes and market practices across jurisdictions, not all aspects of this Policy may apply to all Invesco investment teams at all times. In the case of a conflict between this Policy and the operating guidelines and procedures of a regional investment center the latter will control.
Well-governed companies are characterized by a primary focus on the interests of shareholders, accountable boards of directors, ample transparency in financial disclosure, performance-driven cultures and appropriate consideration of all stakeholders. Invesco conducts deep research, including consideration of the environmental and social impacts, which guides our voting on the company’s resolutions and leads to robust voting outcomes for our clients.
Invesco votes for proposals that maximize long-term shareholder value. Invesco believes in corporate accountability and supports governance structures reinforcing management's accountability to its board of directors as well as board of directors' accountability to its shareholders. In addition to the performance-driven considerations noted above, Invesco also believes that environmental, social and corporate governance proposals can influence long-term shareholder value and should be voted in a manner that maximizes such long-term shareholder value.
We provide institutional investors with many opportunities to provide feedback to senior management by participating in conferences, one-on-one and collaborative group meetings, letter writing campaigns, and via service providers. Active engagement and dialogue with our portfolio companies is a key element of our investment process.
Our investment teams may engage and, where necessary, question or challenge company management about ESG issues within the context of our fiduciary obligation to our clients. The occurrence, nature and content of those engagements are confidential, which we believe serves to facilitate the engagement process and provides better outcomes for clients.
Furthermore, we ask that issuers not share any material non-public information (MNPI) during engagement calls and/or meetings. If any MNPI is shared with Invesco, we may ask that the information be disclosed publicly immediately.
Following an unsuccessful vote or engagement, Invesco may utilize escalation strategies, such as engaging directly with the company’s board and/or senior management, collaborating with fellow shareholders, sponsoring service provider engagement, reducing investment, and ultimately divesting.
Our four-step approach to engagement:
In order to enhance Invesco’s engagement with corporate issuers, please direct all requests to our global centralized mailbox at email@example.com.
Once the request is received, we look at all of our holdings by issuer, pull historical voting data and relevant research and identify all internal investors that hold the respective issuer across Invesco.
In advance of any call, we ask that all of our issuers provide a “key topics” list of discussion points as well as any material changes to key items such as compensation, management or strategy.
These requests are funneled to our internal governance team which reviews the nature of the request. At Invesco, we believe that the most productive dialogue with our portfolio companies occurs outside peak voting season. Therefore, we suggest reaching out to Invesco in the early fall of each year. The governance team consults with the appropriate investors and decides whether to (a) gather feedback on a topic and provide that feedback to an issuer, (b) schedule a call if it is deemed to be necessary, or (c) engage directly and serve as a liaison. Our proxy governance team will set up the calls with our investors and issuers when and if a call is deemed necessary.