Two-thirds of asset managers unable to detail voting performance

Only a third of asset managers could provide details of how they had used their influence in voting, according to a new survey by Dalriada Trustees.

Of the 43 asset managers contacted by Dalriada’s service partner, Minerva Analytics, two-thirds were unable to provide details of how they exercised their voting rights or engaged with the companies they invest in.

Just over a quarter provided no information, while 40% said there was no information to report.

Exercising voting rights is a key way for pension trustees to ensure they are meeting their fiduciary duties to act in the best interests of their members, the professional trustee firm said.

This has become increasingly important when holding companies to account on the extent to which they meet environmental, sustainable and governance goals.

When it comes to engagement, asset managers are similarly lacking appropriate data required by pension scheme trustees, the survey found.

Just 23% of managers could provide detailed information on engagement they undertook and a further 19% were able to provide only partial information.

Around 40% of managers provided no information on engagement, while 16% said that there was no information to report.

David Fogarty, Director at Dalriada Trustees Limited with responsibility for Investment, commented: “As Trustees, we need to be able to show members what action we are taking in terms of voting and engagement on the assets we govern on their behalf. Yet, we are in a position where we are receiving insufficient information from the asset management community. We are seeing managers marketing funds for their ESG credentials, but they are failing to provide clear evidence of the actions being taken; clearly, this needs to change.”