What is ‘stewardship’?

Stewardship is the responsible allocation, management and oversight of capital (money) to create long-term value for investors, leading to sustainable benefits for the economy, the environment and society, on which returns and investors’ interests depend.

Artemis believes stewardship activities can contribute to better-performing companies and therefore returns for our clients. These activities encompass ESG integration, engagement and voting.

Stewardship is as an important tool in delivering value to investors. Building good relationships with the management teams of companies that fund managers invest in, gives them the scope to influence the way companies act and the decisions they make, for the benefit of shareholders. Stewardship focuses on material issues across business strategy, capital allocation and environmental, social and governance (ESG) factors.

Examples of ways in which fund managers may seek to influence companies include:

• Meeting with the management teams of current or potential investee companies
• Voting at shareholder meetings
• Writing to companies to highlight particular issues or to request further information to be disclosed
• Collaborating in industry-wide initiatives on specific issues

Stewardship can also involve engaging with other stakeholders beyond company management, including:

• Governmental and regulatory policy-makers and standard-setters
• Public activities such as research
• Public discourse and disclosures that support stewardship goals

Engagement

While stewardship and engagement are often referred to interchangeably, engagement is just one of many stewardship tools available to investors. It primarily refers to an investor, such as a fund manager, communicating with current or potential companies to improve ESG practices, sustainability outcomes or public disclosures.

For Artemis, engaging with companies is the mechanism by which we raise issues with company management and monitor subsequent developments.

Engagement can include face-to-face meetings, calls, emails and letters on a wide range of topics including strategy, operational performance, ESG issues and industry-specific considerations.

For Artemis, the relationships our fund managers have built and the knowledge derived from meeting and engaging with companies continue to inform the investment decisions of our fund managers.

Read more about engagement, including our engagement policy and voting records

This information is intended to provide you with help and guidance about investing generally and about investing with Artemis. It is not a marketing communication and should not be used to make investment decisions. You should always refer to the relevant fund prospectus and KIID/KID before making any final investment decisions.

Artemis does not provide investment advice on the advantages or suitability of its products and no information provided should be viewed in this way. Should you be unsure about the suitability of an investment, you should consult a suitably qualified professional adviser.