AMNT Red Line Voting Monitor
To help pension trustees meet their regulatory duties to monitor stewardship and ESG, the Association of Member Nominated Trustees (AMNT) published the Red Line Voting Policy
The Red Lines Voting Policy addresses the most material Environmental, Social and Governance (ESG) factors across 34 individual policy statements or ‘Red Lines’ (19 Governance, 10 Social and 5 Environmental).
Guidance from the UK’s Pension Regulator (tPR) requires that trustees should develop policies on stewardship and responsible investment. Red Line Voting guidance helps pension trustees meet these responsibilities.
Red Line Voting can deepen their understanding of how the fund managers who are entrusted to manage their investments are addressing stewardship and voting and holding investee companies to account in respect of a range of ESG good practices.
Minerva’s Red Line Monitor enables AMNT members or their investment managers to implement Red Line Voting quickly and cost-effectively. Red Line Monitor equips trustees with detailed analyses of:
- How the stewardship of their assets is being managed
- How individual companies measure up to the Red Lines
- How the portfolio overall measures up to the Red Lines
How it works
The Minerva Red Line Monitor service is comprised of four closely connected modules:
1. Company Profiles
Minerva prepares comprehensive insight reports for each company focusing on Governance, Remuneration and Sustainability. Our independent analyses form the basis for the Red Line Voting Guidelines analysis.
2. Red Line Voting Guidelines
The AMNT’s Red Line Voting framework and principles have been coded and mapped to the Minerva Custom Voting Template system to create voting guidelines.
The Red Line Voting Guidelines then flag potential voting policy issues, either at AGM time or as part of regular stewardship monitoring.
In the spirit of the AMNT’s Red Line Voting position paper, users can fine tune their policy as required. The quality of company explanations is very important to the Red Line Policy as these allow asset owners and managers to work within the UK’s Comply or Explain stewardship framework. It also gives fund managers the assurance that they can quickly and easily provide comprehensive feedback to their clients based on a rigorous analysis and data-driven evidence.
3. Red Line Portfolio Review
Minerva provides a customised analysis of individual portfolios using the Red Line voting policy alerting Trustees where the Red Line issues are a priority. The portfolio review can be used to assess existing portfolios or as a fund manager due diligence tool at the selection stage.
The Red Line Monitor service hence provides an easy to use, interactive, screening tool to understand how individual companies or sectors measure up to the Red Line guidance.
4. Fund Manager Vote Reporting
Where asset management or fund voting has been outsourced, Minerva can provide a comprehensive audit and review of how fund managers have voted in comparison with some or all of the Red Line policy triggers.
Find out how Red Lines Monitor can help you
To find out more about Red Line Monitor you can either email email@example.com, call + 44(0)1376 503500 or send an enquiry using the form below. We look forward to hearing from you.
Last Updated: 28 March 2017