Mellon Proxy Guiding Principles
At Mellon, we have a fiduciary responsibility to our clients. We seek to make proxy voting decisions that are in the best long-term economic interest of our clients as shareholders. We approach proxy voting with the same analysis and engagement that we apply to our investment activities. Our belief is that a company’s environmental, social and
governance (ESG) practices have a long-term effect on a company’s economic value, and therefore we consider these factors when voting proxies. We understand that we owe each of our clients a duty of care and loyalty with respect to voting proxies. Therefore, we have created Proxy Voting Guidelines and a Proxy and Governance Committee that includes senior investment professionals. The following high-level principles guide us as we continue to act in the best long-term interest of our clients.
Proxy Voting Guidelines
- Promote the accountability of a company’s management to its board of directors, as well as the accountability of the board of directors to the company’s shareholders;
- Align the interests of a company’s management and board of directors with those of the company’s stakeholders;
- Uphold the rights of a company’s shareholders to affect change by voting on those matters submitted to shareholders for approval; and
- Promote transparency and disclosure of a company’s business operations and financial activity.
These guidelines are reviewed annually by Mellon’s Proxy Voting Committee.
Mellon seeks to vote on proxies of non-US companies through application of the Voting Guidelines. However, we may refrain from voting in instances where voting non-US proxies may be detrimental to our clients’ interest due to cost, legal or regulatory requirements, or liquidity constraints.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Mellon Investments Corporation (“Mellon”) is a registered investment advisor and subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”). Any statements of opinion constitute only current opinions of Mellon, which are subject to change and which Mellon does not undertake to update. This publication or any portion thereof may not be copied or distributed without prior written approval from the firm. Statements are correct as of the date of the material only. This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorized. The information in this publication is for general information only and is not intended to provide specific investment advice or recommendations for any purchase or sale of any specific security. Some information contained herein has been obtained from third party sources that are believed to be reliable, but the information has not been independently verified by Mellon. Mellon makes no representations as to the accuracy or the completeness of such information. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment and past performance is no indication of future performance. The indices referred to herein are used for comparative and informational purposes only and have been selected because they are generally considered to be representative of certain markets. Comparisons to indices as benchmarks have limitations because indices have volatility and other material characteristics that may differ from the portfolio, investment or hedge to which they are compared. The providers of the indices referred to herein are not affiliated with Mellon, do not endorse, sponsor, sell or promote the investment strategies or products mentioned herein and they make no representation regarding the advisability of investing in the products and strategies described herein. Please see mellon.com for important index licensing information. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.