Principles for the exercise of voting rights
LLB Fund Services as a management company or AIFM (hereinafter LFS) is invested in domestic and foreign equity securities with the funds it manages. According to national and European requirements, it is obligated to exercise the shareholder and creditor rights associated with the investments independently and exclusively in the interest of the investors. If specific activities are delegated to third parties, LFS ensures that the exercise of these rights is included in the delegation agreements.
Criteria for the exercise of voting rights
Voting rights are exercised actively by LFS or its delegates if long-term investor interests are at stake. In cases where LFS delegates investment management, it indicates in the delegation agreement that the delegate is authorised but not required to exercise rights as a shareholder, co-owner, creditor, etc., and that LFS reserves the exercise of these rights itself.
Voting rights are in principle exercised when the share of the vote in a company, consolidated at the level of LFS, amounts to more than 1% of the voting capital. Even then, voting rights are not exercised on a case-by-case basis if other facts such as the free tradability of the position are weighted more heavily in the interest of the investors .
If the share of the vote amounts to less than 1% of the voting capital, it is at the discretion of LFS or its delegate to exercise the voting rights nonetheless in the interest of the investors. If the delegate intends to exercise shareholder and creditor rights, the delegate informs LFS in advance. If conflicts of interest should arise, LFS pays particular attention that only investor interests and not the interests of the delegates are taken into account when the voting decision is made.
If LFS or its delegates do not actively exercise voting rights, the voting rights are also not exercised by the depositary and thus remain unaffected during the vote taken at the general meeting in question.
Principles of voting policy
When implementing the exercise of voting rights and when more than 1% of the voting capital is held, LFS makes use of the system of an external proxy voting service provider and bases its decisions on the service provider's voting policies.
If the service provider does not provide a voting recommendation, LFS in principle votes in accordance with the proposals of the board of directors of the company in question. If, in individual cases and in the interest of investors, LFS votes against such a proposal, the justification of the vote is provided in writing.