FOR IMMEDIATE RELEASE
MINNEAPOLIS, MN, September 10, 2018 – Magni Global Asset Management today announced the launch of a new blog that curates the firm’s voting history on publicly held companies’ board and shareholder proposals. Importantly, the Magni Proxy Voting blog provides a narrative of good governance among large-cap companies in the US and abroad.
“Proxies allow shareholders to have a voice in the management of the company, and the foundation of good governance is honesty and transparency,” cites Kurt Lieberman, CEO of Magni. “Private proxy firms have significantly increased influence on shareholder votes in annual and special elections. However, these firms are very opaque, unregulated, and may have conflicts of interest which can interfere with the best interests of shareholders”.
When a company has good governance, investors assume that the board is working in the best interests of shareholders. Therefore, voting proxies based on good governance helps communicate to the board that good governance is expected. The actual quality of governance is revealed by the behavior of the people in the company. The behavior impacts not only the shareholders and employees, but also the customers, suppliers, and the community where the company operates.
Magni measures behavior in a company and uses those measurements to score companies for the quality of governance. Magni votes proxies, on behalf of clients, using the same Sustainable Value Creation principles used to score companies. These principles are based on best practices in corporate governance. “This is what differentiates us from other research organizations,” says Lieberman. “In the current ESG environment, most measurement focuses on information that companies are willing to disclose. This rewards companies for generating policies and procedures that relate to governance and social issues, but not their behavior or actual impact.”
About Magni Global Asset Management
Magni Global Asset Management LLC is a leader in corporate governance research on countries and companies, focusing on the behavior of the entity. Magni developed the Sustainable Wealth Creation principles to evaluate country-level governance. The principles are based on widely accepted economic concepts regarding the accounting, legal, regulatory, adjudicative, and economic infrastructures of countries. Countries with strengths in these areas provide environments conducive to effective corporate governance. Magni’s extensive database contains research on countries across 280 qualitative factors over 17 years.
Magni established the Sustainable Value Creation principles to evaluate public companies. These principles were applied to analyze 316 qualitative factors on each company. In addition to researching each company’s relationship with its shareholders and employees, the assessment also includes relationships with customers, suppliers, competitors, and the communities in which a company operates.
Brad Hanson, Managing Director
Laura Gideon, Managing Director
Magni Global Asset Management
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