- About Us
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed.
The challenges of the past year have highlighted the potential for environmental, social, and governance (ESG) factors to become even more relevant to the investments we make on our clients’ behalf and have underscored the increasing importance of stewardship by fiduciaries and active investors. In 2020, an unprecedented number of our corporate engagements included ESG topics, a trend we think will continue in 2021 and beyond. In particular, we expect many conversations to address executive compensation and climate change, along with diversity, equity, and inclusion (DEI).
Ahead of proxy voting season, we are paying particularly close attention to executive compensation plans. Following corporate layoffs and furloughs during the COVID-19 pandemic, outsized executive pay plans have come under greater scrutiny. We prefer executive pay to be more closely aligned with company performance. Generous executive compensation packages that set low bars for performance may be inconsistent with the experience of company shareholders and other stakeholders.
Another focus is climate change, which we believe poses material long-term financial risks for economies, companies, society, and (therefore) client investment portfolios. Companies will need to prepare for both the physical and transition risks associated with climate change. We expect to engage more deeply with companies to help them assess and improve their climate preparedness and disclosures. In December 2020, Wellington became a founding member of the Net Zero Asset Managers initiative. This opportunity enables us to demonstrate continued leadership on climate issues, strengthen engagements with portfolio companies, and enhance consultative client relationships.
We continue to improve our understanding of portfolio companies’ response to and action on racial inequity. While we believe DEI practices can impact long-term performance, we can only adequately assess these practices when robust disclosure is in place. We encourage companies to disclose the racial and ethnic composition of their boards and (starting in 2021) plan to vote against the reelection of US nominating or governance committee chairs that fail to disclose this information. We also expect companies to communicate goals and strategies for fostering a diverse workplace and disclose workforce diversity data. We plan to encourage transparency and improvement in these areas through engagement and proxy voting.
Past results are not necessarily indicative of future results and an investment can lose value. Funds returns are shown net of fees.
Source: Wellington Management
© 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Overall Morningstar Rating for a fund is derived from a weighted average of the three, five, and ten year (if applicable) ratings, based on risk-adjusted return. Past performance is no guarantee of future results.
The content within this page is issued by Wellington Management Singapore Pte Ltd (UEN: 201415544E) (WMS). This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Information contained on this website is provided for information purposes and does not constitute financial advice or recommendation in any security including but not limited to, share in the funds and is prepared without regard to the specific objectives, financial situation or needs of any particular person.
Investment in the funds described on this website carries a substantial degree of risk and places an investor’s capital at risk. The price and value of investments is not guaranteed and may fall or rise. An investor may not get back the original amount invested and an investor may lose all of their investment. Investment in the funds described on this website is not suitable for all investors. Investors should read the prospectus and the Product Highlights Sheet of the respective fund and seek financial advice before deciding whether to purchase shares in any fund. Past performance or any economic trends or forecast, are not necessarily indicative of future performance. Some of the funds described on this website may use or invest in financial derivative instruments for portfolio management and hedging purposes. Investments in the funds are subject to investment risks, including the possible loss of the principal amount invested. None of the funds listed on this website guarantees distributions and distributions may fluctuate and may be paid out of capital. Past distributions are not necessarily indicative of future trends, which may be lower. Please note that payment of distributions out of capital effectively amounts to a return or withdrawal of the principal amount invested or of net capital gains attributable to that principal amount. Actual distribution of income, net capital gains and/or capital will be at the manager’s absolute discretion. Payments on dividends may result in a reduction of NAV per share of the funds. The preceding paragraph is only applicable if the fund intends to pay dividends/ distributions. Performance with preliminary charge (sales charge) is calculated on a NAV to NAV basis, net of 5% preliminary charge (initial sales charge). Unless stated otherwise data is as at previous month end.
Subscriptions may only be made on the basis of the latest prospectus and Product Highlights Sheet, and they can be obtained from WMS or fund distributors upon request.
This material may not be reproduced or distributed, in whole or in part, without the express written consent of Wellington Management.