Shareholder Rights Directive II

Shareholder Engagement update from Utmost PanEurope dac

Utmost PanEurope dac (Utmost) offers investment linked life insurance products in a number of markets. Utmost plays a passive role regarding policyholder investments and does not make investment decisions for policyholders, nor does it play a role in recommending or advising on investment selection.

The products offered by Utmost have different models of investment. Some are ‘open-architecture’ insurance-based investment products. The nature of the ‘open-architecture’ portfolio bond products Utmost makes available is such that the policyholder has the ability to determine their own investment strategy and select the assets to which the returns of their policies can be linked. Utmost does not have its own investment strategy; instead it invests in line with the instructions received from its policyholders.

The policyholder may also have the option to, or, depending on the product, be required to, request the appointment of a regulated discretionary asset manager. In these cases, Utmost’s investments are managed on a discretionary basis, with the management delegated to the regulated discretionary asset managers. Utmost may appoint an investment adviser who would advise on investment choice, in accordance with an investment strategy chosen by a policyholder, and ensure that investment decisions or recommendations are aligned to the risk profiles and investment objectives of Utmost’s policyholders. Utmost would authorise the recommendation and transmit to the relevant custodian for execution, based on the investment adviser’s advice.

Where Utmost’s investments have been selected by discretionary asset managers or, on the basis of advice from an investment adviser, Utmost does not actively engage with investee companies in its portfolios and relies on its appointed asset managers to do so.

Utmost does not take part in shareholder voting and therefore does not have the ability to influence voting outcomes.

Utmost may set or describe a ‘standard’ investment strategy that policyholders may select. However, Utmost will delegate the portfolio management of that strategy to its appointed discretionary asset manager or, in a small number of cases, appoint an investment adviser who will advise on the portfolio management.

Utmost has determined that this description provides sufficient information for policyholders in a meaningful way and has used its discretion not to publish a shareholder engagement policy in accordance with  the European Union (Shareholders’ Rights) Regulations 2020 (S.I. 81 of 2020), which implements the provisions of the Shareholders Rights Directive II (Directive (EU) 2017/828).