Trading and Voting Policies
Trade Allocation and Execution
All asset purchases and sales are equitably allocated to all Milford clients. Note this still allows for Portfolio Managers to specify pre-trade a target allocation across funds that is not pro rata (as described in the Central Dealing Desk Policy).
Prices are averaged where execution prices fluctuate. Where the number of shares purchased is less than required, the allocation is made to client portfolios on the basis of their percentage of the original order (in exceptional circumstances, where the size of a trade is very small relative to a portfolio and it would not materially impact the value of that portfolio, this may not apply). No client portfolios are favoured in terms of trade prices, volumes or allocation.
Milford’s policy is to vote its proxies on all issues for all the entities it invests in on behalf of its investors.
Milford Funds Limited – Responsible Investing
Milford’s responsible investment policy is to improve New Zealand’s long-term economic well-being by taking strong stands on corporate governance issues. Analysing whether an entity adheres to appropriate corporate governance policies is a key part of any research Milford undertakes on the merits of investing into an entity.
The corporate governance policies that Milford follow include:
- A clear separation between Chairman and Chief Executive
- A demonstrated commitment to increasing entity value for all shareholders
- At lease half independent directors
- A board that consists of highly competent and involved directors, with a mix of skills to contribute. A strong emphasis is placed on the commercial skills of directors
- Clearly articulated and consistently followed fair remuneration policies for senior management and the board