F&C Asset Management says that all Dutch pension funds should be able to comply with new legislation requiring pension funds and insurers to disclose voting records at AGMs.
“Voting disclosure is not a job for pension funds but for their fund managers,” says Henk Breukink, Managing Director and Country Head, F&C Netherlands. “A very large percentage of smaller pension funds, members of OPF, a Dutch company pension fund association, outsource the management of their investment portfolios to fund managers. In our experience, any fund manager should be able to provide the level of accountability proposed by Dutch legislators, no matter how small the pension fund client. If a fund manager appears to be unable to fulfil this requirement, then this new law will reveal that there is a problem in terms of the service that asset managers should be equipped to provide.” He added that compulsory voting disclosure is not a new concept.
Karina Litvack, Head of Governance and SRI at F&C Asset Management, adds that disclosure was inexpensive and would “encourage more thoughtful voting”. She says: “Although votes on some matters are routine and in most cases management should be supported, some votes merit close attention and an abstention or vote against management can open up a discussion that will be beneficial to companies and shareholders in the long run.”