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Sands Capital Releases 2022 Stewardship Report

Our latest annual report offers a comprehensive view of how we add value through active stewardship.

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May 2023

Our second annual stewardship report reflects our commitment to provide clients and other key stakeholders with transparency into our initiatives, actions, and the progress we made in 2022. Covering our integrated environmental, social, and governance (ESG) research and active ownership, it includes discussions on key initiatives in the areas of climate change, digital ethics and modern slavery, program metrics, and case studies of our efforts to advocate for positive change through engagement and voting. We also review our contributions to promoting well-functioning markets, address systemic and potential market risks, and detail collaborations with organizations that we see playing critical roles in setting industry standards and guiding stewardship best practices.

Highlights of our stewardship efforts in 2022 include:

  • We conducted 154 engagements on ESG-specific matters with 106 portfolio businesses domiciled in 21 countries.
  • During our engagements, we most frequently addressed concerns related to human capital management, board structure or composition, and capital structure.
  • We voted on 99.7 percent of all eligible proxy items, casting 95 percent of votes in favor of management recommendations and five percent in opposition.
  • Our votes against management most frequently pertained to proposals on electing directors, compensation, capitalization, and other business “blank check” items.

The report features numerous case studies of portfolio businesses to illustrate how we have built constructive relationships with management teams through exchanging information and perspectives and influencing positive changes in their businesses. These studies provide examples of escalation, proxy voting, engagement on executive compensation, transition risk, modern slavery, and risk assessment and management.

As a collection of our most salient stewardship perspectives and relevant reporting on progress, the 2022 stewardship report is designed to be a comprehensive resource for clients, consultants, and other stakeholders and to address the reporting requirements of the UK Stewardship Code.

Disclosures:

This material is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security. All investments are subject to market risk, including the possible loss of principal.

The views expressed are the opinion of Sands Capital and are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. The views expressed were current as of the date indicated and are subject to change. This material may contain forward-looking statements, which are subject to uncertainty and contingencies outside of Sands Capital’s control. Readers should not place undue reliance upon these forward-looking statements. There is no guarantee that Sands Capital will meet its stated goals. All investments are subject to market risk, including the possible loss of principal. Past performance is not indicative of future results.

Per Sands Capital’s Proxy Voting Policy, there may be situations in which the firm may abstain from voting a particular proxy or proposal. Please refer to Sands Capital’s Proxy Voting Policy located at https://www.sandscapital.com/stewardship for additional information. All proxy proposal decisions listed are the opinion of Sands Capital and are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities.

This material is for informational purposes only and does not constitute an offer, invitation, or recommendation to buy, sell, subscribe for, or issue any securities. The material is based on information that we consider correct, and any estimates, opinions, conclusions, or recommendations contained in this communication are reasonably held or made at the time of compilation. However, no warranty is made as to the accuracy or reliability of any estimates, opinions, conclusions, or recommendations. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. 

In the United Kingdom, this communication is issued by Sands Capital Advisors – UK Ltd (“Sands UK”) and approved by Robert Quinn Advisory LLP, which is authorised and regulated by the UK Financial Conduct Authority (“FCA”). Sands UK is an Appointed Representative of Robert Quinn Advisory LLP. This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the “Act”) and the handbook of rules and guidance issued from time to time by the FCA (the “FCA Rules”). This material is for information purposes only and does not constitute an offer to subscribe for or purchase of any financial instrument. Sands UK neither provides investment advice to, nor receives and transmits orders from, persons to whom this material is communicated, nor does it carry on any other activities with or for such persons that constitute “MiFID or equivalent third country business” for the purposes of the FCA Rules. All information provided is not warranted as to completeness or accuracy and is subject to change without notice. This communication and any investment or service to which this material may relate is exclusively intended for persons who are Professional Clients or Eligible Counterparties for the purposes of the FCA Rules and other persons should not act or rely on it. This communication is not intended for use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

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