Fulfilling the goals of the funds Booster manages is a central aim of our business. Finding the correct balance between return and risk is key to this, however, investing in a company's shares also comes with opportunities to display good stewardship as an investor.
This usually considers wider economic, social and environmental factors.
Guided by our environmental, social and governance (ESG) assessments – outlined in our Approach to Responsible Investing Policy document – we selectively seek to engage with companies we invest in. Our stewardship focus spans themes such as climate change, board independence, shareholder rights and transparency. Our goal? Stronger companies, better governance and, ultimately, better outcomes for our investors.
One of the most direct ways we may seek to influence the companies the funds we manage are invested in is via annual general meetings (AGMs). These meetings give shareholders the opportunity to vote on resolutions, proposals and board appointments. In 2024 alone, Booster cast votes on 4,388 resolutions at 361 meetings on behalf of the funds we manage.
Of course, with investments in companies worldwide, attending every AGM in person isn’t practical. That’s where proxy voting comes in. Proxy voting allows us to submit votes remotely, ensuring our stance on key issues is counted. While we often align with board recommendations, we make independent judgments based on what we believe supports better corporate governance. In 2024, we voted against 68 board proposals – most related to director appointments and remuneration, but also issues such as corporate transparency and environmental impact.
Voting is just one part of the equation. Engagement is another tool. We selectively seek to meet, call and email certain companies that our managed funds are invested in to outline our expectations, track progress and advocate for meaningful improvements.
Our voice has the potential to be more impactful when we collaborate with other investors. That’s why we join initiatives like Climate Action 100+, a global investor-led movement pressing the world’s largest greenhouse gas emitters to take action on climate change.
Take Qantas, for example. The airline emitted 17.6m tonnes of carbon dioxide in 2024 –equivalent to 4% of Australia’s total CO2 emissions. Working with Climate Action 100+, we engaged with Qantas during 2024. It was pleasing to see that Qantas has set up the A$400m Qantas Climate Fund which is dedicated to sustainability projects, with a focus on developing sustainable aviation fuel.
Another example is Home Depot, the US DIY retailer. With our global equity manager Fisher Investments, we engaged with Home Depot to better understand how sustainability factors into its business. While its commitment to reducing greenhouse gas emissions by 42% by 2030 is a positive step, it still lacks a formal climate transition plan. We’ve also pushed for greater transparency around its biodiversity efforts, particularly given that only 61.6% of its wood comes from responsibly managed sources. Our engagement with Home Depot is ongoing.
Similarly, an external fund manager we work with, Fisher Investments engaged Volkswagen with our support to gain deeper insights into its sustainability approach. The German carmaker has faced challenges in its electric vehicle transition, with adoption rates slower than predicted. However, VW remains committed to its long-term goals, aiming to phase out internal combustion engines in all new cars sold in the EU by 2035 and to reach net zero emissions by 2050. Despite past controversies, the company has developed a robust sustainability strategy and appears to have moved beyond its emissions scandal. Booster will continue to monitor its progress against these targets, ensuring it stays on track to meet its commitments.
Proxy voting and engagement are key tools that allow Booster to advocate for better corporate governance, responsible business practices, and long-term sustainability. These efforts don’t just potentially benefit the companies we invest in – they aim to deliver stronger returns, mitigate environmental, social and governance risks, and, ultimately, lead to better outcomes for our investors.