VOTING POLICY OF THE MANAGEMENT COMPANY
2022 ANNUAL REPORT
AT GENERAL MEETINGS
Articles 321-132 to 321-134, 321-158 and 321-159 (formerly 314-100 to 314-104) of the RGAMF, Articles 319-21 to 319-25 of the RGAMF, Article 37 of Delegated Regulation (EU) n °231/2013 of the Commission of December 19, 2012 - AFG Rules of Professional Conduct (Recommendations) – Position-Recommendation No. 2005-19 updated of July 29, 2014
The exercise of voting rights as defined in the RGAMF relates to the legal information that each management company must provide for the management of its UCITS and AIFs. It is grouped together at Hugau Gestion in the “Voting policy” document.
It concerns equity securities held in UCITS and AIFs managed by Hugau Gestion, namely the FCP Hugau Rendement Responsable, the SICAV Hugau Patrimoine and the FCP Hugau Actions Monde. But the general principles of the voting policy, based on the independence of financial analysis, inspire all of the Company's management activities. They are also applied in the ESG principles for responsible investment and good governance that Hugau Gestion takes into account in fund management. For example, at Hugau Gestion, each credit analysis carried out by issuer of debt securities has included the ESG score (governance, social, environment) of the selected company since 2019. This score calculated by Vigeo Eiris (Moody's ESG Solutions) is accompanied by a qualitative commentary by Hugau Gestion on the sector and the issuer.
These principles also aim to involve our clients in improving the governance of the companies in which we invest as well as the quality and transparency of the financial information disseminated.
Their main purpose is above all to enforce the rights of the shareholder for the benefit of the saver, subscriber of UCI.
From 2016/2017, Hugau Gestion had an independent company, the company "Trucost", carry out an energy balance (calculation of the carbon footprint) of its UCIs for the sake of transparency and a desire to go further in its environmental approach. . In 2018, Hugau Gestion commissioned the company Vigeo Eiris (Moody's ESG Solutions) to calculate the ESG score of its portfolios once a year, as well as to draw up a summary of the carbon footprint and the energy transition. These analyzes were carried out in April 2018. However, in 2019 Hugau Gestion took out an annual subscription with this same company, giving it continuous access to its database. This has since enabled Hugau Gestion to perfect its rating process for each company and each issuer selected for its management. Each of these issuers is analyzed and discussed as part of the company's quarterly ESG Committee.
Hugau Gestion has also committed by signing the PRI in 2018 with a first report in March 2020.
Hugau Gestion has the best rating, A+, in Listed Equity and an A rating, in “Strategy and Governance”, “Fixed Income – Corporate Financial”, and “Fixed Income – Corporate Non-Financial” in the “2020 PRI Assessment”. For the “2021 PRI Assessment”, Hugau Gestion displays scores of 71/100 in “Investment & Stewardship Policy”, 79/100 in “Listed Equity – Active fundamental – Incorporation”, 82/100 in “Listed Equity – Active Fundamental – voting” and 67/100 on Fixed Income – Corporate”.
In 2021, the company Hugau Gestion, as part of the integration of the SFDR 2019/2088 regulation called "Disclosure" aimed at strengthening transparency in the publication of financial information, opted for a classification of its UCIs according to the section 8 of the Regulations. This classification means that the UCIs managed by Hugau Gestion promote environmental and social characteristics (Hugau Rendement Responsable funds) or a combination of these characteristics provided that the companies in which the investments are made apply good governance practices. In 2022, Hugau gestion created a new position within the company and appointed an employee “ESG research officer” Mrs. Rim Bouzrara.
The general principle of our voting policy is systematic participation in decisions submitted to shareholders for French companies held in the portfolio, provided that the minimum weight of the company in the fund's assets is greater than or equal to 2%. The company does not give blank powers to the Chairmen of the Board of Directors.
For foreign companies, the exercise of voting rights depends on the receipt of voting forms (not provided by the custodian).
The company's voting policy of Hugau Gestion can be found on the website www.hugau-gestion.com or at our Office. It is freely available to unitholders or shareholders of investment funds, as well as the voting Annual Report. It is provided to directors of the Board of the SICAV Hugau Patrimoine, and also to the directors of the Management Company, Hugau Gestion