CRUX Asset Management (“CRUX”) has a recognisable and well-established investment approach, at the heart of which CRUX seeks to deliver long-term capital growth through actively managed long-only equity portfolios. Our primary focus has always been ensuring that our fund managers are the best possible stewards of our clients’ assets, selecting each investment on their ability to create long-term sustainable returns.
Engagement and proxy voting form the two main pillars of our active ownership approach. We will actively engage with investee companies during investment research process or if we perceive an underlying stewardship issue needs greater clarity. Instances where it may be necessary for us to engage directly with the company include where we have concerns about the company’s strategy, performance, governance, remuneration or approach to risks, including those that may arise from social and environmental matters.
As active investors, we recognise our responsibility to make considered use of voting rights. We therefore evaluate voting issues on our investments and vote on them in line with our fiduciary responsibilities to clients. CRUX aims to vote on all resolutions, unless we are restricted from doing so. At the core of CRUX’s rigorous investment approach is finding businesses whose management have proven track records. By this very nature, therefore, CRUX fund managers have to have significant confidence in the management’s decision-making ability as a prerequisite for holding the investee company. It is for this reason that CRUX’s default position is to vote with management. We do however, reserve the right to vote against management if we believe it is our clients’ best long-term interests. In the event that it is necessary to escalate matters within an investee company, we may do so by engaging with the company ahead of General Meetings and attending ad hoc meetings with management or analysts. Where engagement has been unsuccessful, we would vote against those we view as being accountable or sell out of the position entirely, if we no longer had confidence in the management to protect our clients’ assets.