A conflict of interest potentially arises where:
- An employee or Director of any Prudential group company is also a Director of a company in which M&G invests;
- M&G invests in a company that is a client of M&G; or
- M&G invests in a company that is a significant distributor of M&G products.
In such instances, M&G may be conflicted, for example, in the way it deals with the Directors and/or company management, votes on their election and votes on remuneration policies that might apply to them.
Where a potential conflict arises, the conflict is reported in line with the wider M&G Group Conflicts of Interest Policy and an appropriate plan for mitigating the conflict is agreed. In determining the appropriate mitigation a number of factors will be considered. These includes the nature of the relationship with individuals and the extent to which the relationship could be managed by individuals who are not conflicted, the materiality of any contracts, and the risks of the potential conflict to client interests.
Interests of clients diverge on issues being voted on
On occasion, the interest of clients may diverge on issues on which we are voting. For example, where segregated mandates are being managed alongside a retail fund, or where clients within the same fund have different views.
We are able to vote shares differentially and will assess the voting of shares against each client mandate. Where client interests diverge, then we will vote accordingly, but this is a rare event.
Generally, M&G votes by proxy at general meetings on all holdings held in active funds. On occasion we will attend a general meeting where our clients’ interests are best served by us doing so.