Protecting the interests of investors is our top priority at Feri Trust (Luxembourg) S.A. The exercise of voting rights at general meetings is of particular importance in this context.
In principle, Feri Trust (Luxembourg) S.A. does not seek to exercise voting rights. In any case, the maximum percentage share of an asset permissible in law and the duty to diversify (Articles 43-48 of the Law of 17th December 2010) mean that it is generally not possible to obtain voting rights with any degree of influence. Nevertheless, the principles set out below provide guidelines according to which Feri Trust (Luxembourg) S.A. exercises voting rights at general meetings – either directly or indirectly – in the interests of investors.
Feri Trust (Luxembourg) S.A. exercises voting rights either directly itself or delegates these by proxy to a third party, usually investment managers or mandated lawyers. In doing so, we always issue instructions beforehand.
Votes, proxies, instructions issued and various other documents are archived.
If required, an agreement with the custodian bank may be reached with regard to the blocking of voting rights, for example on the day of a general meeting.
In the case of routine decisions which generally have no long-term impact, our vote will normally be cast in favour of any motion proposed by the management.
In the case of decisions that have a major impact (e.g. mergers and acquisitions, restructurings, spin-offs, changes to capital structure and voting rights), we will generally request the investment manager to supply us with detailed information for our consideration.
In the case of contentious decisions, we will refrain from liquidating securities in order to gain possession of a larger voting share.