As an asset manager, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH (hereinafter MEAG) is obliged pursuant to Section 134b (1) of the German Stock Corporation Act (AktG) to describe and publish how it is involved in its portfolio companies.
MEAG will explain the following topics in more detail:
In the event of any discrepancies between the English and German versions of this document, the German version shall prevail.
In general, MEAG exercises the shareholder rights to which it is entitled for domestic and foreign shares in its fund holdings.
As a rule, MEAG does not attend general meetings itself because of the costs involved. Instead, it asks one of the following entities to exercise the voting rights as instructed in detail.
If votes can be cast on the company's homepage, MEAG may vote itself without commissioning a third party.
Our investors are predominantly insurance companies that structure their investment portfolios to align with the calculated timing and amounts of potential insurance claims, and with balance sheet and income requirements. Our investment strategy is accordingly based on the statutory demands on the investment principles of security, quality, liquidity and profitability as well as aspects of sustainability, as dictated to us by our investors.
This results in requirements that MEAG has to meet using suitable methods, taking into account consequences for the fungibility of the managed shares, the portfolio's maturity structure, investment currencies and risk concentrations in individual counterparties or sectors.
In particular, the quotas and limits of our investors provide MEAG with a framework for the tactical execution of the investment strategy in equities.
With its Proxy Voting Policy MEAG makes sure to vote for measures that may have a positive long-term impact on the company's development and votes against measures that may have a negative impact on the company. MEAG is aided in this by analyses from an external proxy voting agent.
In addition to critical factors such as
we also consider and analyse things such as social, ecological and governance (ESG) aspects, looking into whether the company adheres to sustainability standards, codes and principles, whether it documents its strategy for doing business responsibly in writing and whether it provides information on its activities and ESG principles, e.g. with regard to climate, biodiversity, environmental aspects, employee concerns, respect for human rights and the combating of corruption.
MEAG assesses the roles and responsibilities of the management board and its committees, to understand the level of oversight they exercise over sustainability and climate-related risks and opportunities.
We also expect issuers to disclose all sustainability and climate-related risks, either in their reports to the Task Force on Climate-Related Financial Disclosures (TCFD), the Carbon Disclosure Project (CDP) or in a sustainability report, so that we as a shareholder can assess how the company is addressing climate change issues, and environmental and social factors. We assess how a company manages ESG-related risks and climate change according to how ESG risks, in particular climate risks, are incorporated into the top management's bonus structures.
We judge the company's climate-change strategy based on whether it has set itself net zero by 2050 aims.
In order to always keep abreast of important matters in the portfolio companies, MEAG evaluates annual reports, internet publications and analyses done by internal and external research providers. MEAG also takes the opportunity to contact the company's corporate bodies and stakeholders directly.
MEAG uses opportunities to talk directly with the companies' board (and supervisory board) members and other corporate units.
MEAG does not act in concert with other shareholders when voting on a company's business orientation at a general meeting.
MEAG examines shareholder proposals from other asset managers and shareholders on the agenda of a company's general meeting on a case-by-case basis and supports the proposals if they are in our investors' best interests.
MEAG votes only in the interests of its own financial investors, and not in those of third parties.
It refrains from any abuse of the position as minority shareholder.
Within its investment strategy, MEAG may transfer shareholdings to third parties in securities lending transactions. If it does, it could lose the possibility to exercise its voting rights, as these rights then transfer to the third party.
However, MEAG has contractual agreements with the business partners involved to ensure that securities lending transactions are terminated before the start of an AGM. Accordingly, MEAG exercises its voting rights itself.
If a conflict of interest to the detriment of an investor arises, MEAG resolves it in the best interests of the investors concerned. MEAG has internal guidelines for such cases, which ensure that conflicts of interest are avoided and that unavoidable ones are dealt with and disclosed appropriately. Further information on how MEAG deals with conflicts of interest can be found in our Conflict of Interest Policy.
All voting decisions are made transparent. Records of voting decisions are publicly available.
Details are provided in MEAG's voluntary quarterly- and obligatory annual reports pursuant to Section 134b (2) and (3) of the German Stock Corporation Act (AktG).
