The investment team complies with the Principles for Responsible Investment (PRI), continues to actively implement action plans, and seeks out investments according to the "Leading Investment" strategy under the "Fubon Financial Holdings ESG Visioning Project" strategic blueprint in industries such as those involved in new drug development and biotechnology, investments in green energy or alternative energy industries, investments in real estate development involving energy-saving designs, and investments in industries which work on basic infrastructure so as to achieve our goal of promoting the health and well-being of humanity, ensuring all people are able to obtain sustainable and clean energy, and helping to improve basic infrastructure. Details concerning the actual conditions of sector-based investments in 2017 are as follows:
|Fubon Financial Holdings Visioning Project Strategy||Action Plans||Results of Action Plans in 2017|
|Promote the Health and Well-being of Humanity||Active Investment in New Drug Development and Pharmaceutical Production||
|Green Energy Development||Active Investment in Alternative Energy Industries||
|Establish Infrastructure Projects that are Resilient and Lead to Accelerated Innovation||Incorporate Energy-Saving Designs into Planned Real Estate Development Projects||In 2017, various planned real estate development projects in which Fubon Life is invested continued to be developed, resulting in a total development budget in excess of NT$25 billion.|
|Actively Seek Out Investments in Infrastructure Projects||Fubon Life invested approximately NT$4.9 billion in funds targeting overseas infrastructure projects.|
In addition to taking a detailed inventory and conducting analyses of existing themed-investments (e.g., new drug development, alternative energy, infrastructure, green buildings, etc.), the Company intends to make additional investments in enterprises which have excellent ESG performance and will continue to make pertinent investments which accommodate various government policies (e.g., the Forward-looking Infrastructure Development Program and the 5+2 Industries Plan), underscoring the Company's commitment to implementing our responsible investment strategies and gradually increasing the proportion of our responsible investments.
Launching ESG Products
In May of 2017, Fubon Asset Management issued the "Fubon TWSE Corporate Governance 100 ETF", which has an investment management objective of tracking the performance of the TWSE Corporate Governance 100 Index, making it the first ETF in the nation to have an investment theme based on the concept of corporate governance. By choosing to invest in this Corporate Governance ETF, investors are supporting enterprises with good corporate governance practices and helping to power a positive cycle in the capital market.
|Performance of the Fubon TWSE Corporate Governance 100 ETF|
|Fund Size (NTD, in hundred millions)||23.86|
|Fund ROI (%)||10.09|
|TAIEX ROI (%)||6.91|
Performance Period: May 4, 2017 to December 31, 2017
Shareholder Activism: Exercising Active Ownership
As a shareholder in numerous companies, Fubon Asset Management makes prudent assessments and informed decisions which take into account the best interests of clients or beneficiaries in order to effectively execute its voting rights at annual shareholders meetings. In 2017, Fubon FHC cast votes at the annual shareholders meetings of 222 companies. In 2017, a total of 230 companies in which we are invested held annual shareholders meetings, of which we attended the meetings of 222 companies; Fubon was not required to be present at the meetings of a total of 8 companies (investors are not required to be present in cases where electronic voting measures are not adopted, where less than 300,000 shares are held, and where total aggregate shares held for all funds combined amount to less than 1 million shares). By having a representative physically present at the meetings of 222 companies, Fubon achieved an attendance rate of 96.6%.
When exercising voting rights, Fubon Asset Management is prohibited from supporting proposals which would violate ESG principles. Our hope is to have a positive impact on the actions taken by companies in which we are invested, encourage investee companies to place greater emphasis on ESG issues, and help more companies introduce improvements into their enterprise management procedures.
Achieving the Principles for Responsible Investment
The Company remains dedicated to putting mechanisms in place that take into account the three main angles of policy, products, and individual investment targets in order to incorporate and enhance responsible investing, thereby boosting investments in enterprises with sustainable operations and maintaining stable long-term investment performance. Meanwhile, we are using positive social energy to power a wave of responsible investment in Taiwan's financial industry.More About Responsible Investment Actions Information >
Fubon Asset Management Signed a Compliance Statement for the "Stewardship Principles for Institutional Investors"
Fubon Asset Management Co., Ltd., Ltd. is classified as an asset manager and is primarily engaged in the securities investment trust business, discretionary investment business, securities investment consulting business, futures trust business, and other businesses approved by the competent authority. The Company has signed a compliance statement for the "Stewardship Principles for Institutional Investors", please refer to Fubon Asset Management website.
The Company regularly or periodically discloses information on the Fubon Asset Management website concerning the status of fulfilling its stewardship responsibilities, including the compliance statement, explanations for an inability to conform to certain portions of the principles, and information on the various stewardship principals, such as: Stewardship Policy; Conflict of Interest Policy; Dialogue and Interaction with Investee Companies; Attendance and Voting Policy for Shareholders Meetings of Investee Companies and Voting Results; and other important matters.