Association of Institutional Shareholders (VIP)

The Vereinigung Institutionelle Privatanleger e. V. (VIP), rendered in English as the Association of Institutional Shareholders, is a German shareholder association and independent proxy agent headquartered in Bonn. It describes itself as "the physical proxy agent standing for the best practice in sustainable, ethical corporate governance" and as "the independent service provider for SRI (social responsibility investment)", positioning itself as the most experienced representative to speak on discharge votes or counter-motions at annual general meetings (AGMs) on behalf of beneficial owners. Its core activity is the representation of institutional shareholders at AGMs of German and international listed stock corporations. VIP operates as a registered voluntary association (eingetragener Verein) with offices in Bonn, Cologne and three further locations. Its main task is to observe the conduct of management boards (Vorstände) and supervisory boards (Aufsichtsräte) of listed companies in the sense of good corporate governance, and to vote on behalf of institutional investors wherever those investors see a conflict of interest in exercising their own voting rights. Speaking and motion rights at AGMs are exercised predominantly by its chairman, Hans-Martin Buhlmann. VIP is a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and a signatory of the Principles for Responsible Investment (PRI), an ambitious and forward-looking set of principles seeking to implement social, environmental and governance (ESG) issues in sustainable investment contents. The association argues that corporate governance and ESG demonstrably enhance profits and market liquidity, and it uses its professionalism as an active, publicly operating physical proxy agent at annual general meetings in order to influence management processes effectively by pointing to the rules of best practice in corporate governance. VIP offers a modular ordering system: customers establish the services appropriate to their individual case jointly with VIP and define them in terms of both timing and content, with regular exchange of data and ideas between client and VIP. Unlike other shareholder associations, VIP does not issue voting recommendations before an AGM and does not collect proxy orders from shareholders who wish to align with VIP's positions; it exercises voting rights strictly according to client instruction and can modify voting behaviour in consultation with the client up to ten minutes before a vote. The association's name has been the subject of controversy, since it represents exclusively "professional clients" while calling them "private investors" because they engage VIP as a representative to voice unofficial, and therefore "private", standpoints at AGMs, allowing the instructing investor to remain anonymous.

The Vereinigung Institutionelle Privatanleger e. V. (VIP) is a German shareholder association registered as a voluntary association (eingetragener Verein). It maintains offices in Bonn, Cologne and three further locations, and its main activity is the representation of institutional shareholders at annual general meetings (AGMs) of German and international listed stock corporations. In this context, VIP has set itself the task of observing the conduct of management boards and supervisory boards of stock corporations in the sense of good corporate governance, and of voting on behalf of institutional investors wherever those investors see a conflict of interest in exercising their own voting rights. Speaking and motion rights at AGMs are exercised predominantly by its chairman, Hans-Martin Buhlmann. VIP describes itself as a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and a signatory of the Principles for Responsible Investment (PRI), an ambitious and forward-looking set of principles seeking to implement social, environmental and governance (ESG) issues in sustainable investment contents. It states that corporate governance and ESG demonstrably enhance profits and market liquidity, and that it uses its professionalism as an active, publicly operating physical proxy agent at annual general meetings in order to influence management processes effectively by pointing to the rules of best practice in corporate governance. It presents itself as a professional provider of individual services for institutional investors, an independent physical proxy agent with experience of more than 1800 AGMs, and as "the voice of the owners — ordered and paid by the owners". VIP offers a modular ordering system: customers establish the services appropriate to their individual case jointly with VIP and define them in terms of both timing and content, with regular exchange of data and ideas between client and VIP being of primary importance for cooperation aimed at bringing about good and transparent corporate governance. The association's name has been the subject of controversy. While the term "institutional investors" (Institutionelle Anleger) is normally used under the German Securities Trading Act for "professional clients", a "private investor" (Privatanleger) is understood as someone entitled to special legal protection due to lesser financial general education or limited investment experience. VIP, however, represents exclusively "professional clients", who mostly exercise the voting rights of the shares they hold themselves. VIP nevertheless calls its professional clients "private investors" because they engage VIP as a representative to voice unofficial, and therefore "private", standpoints at AGMs — for example, in order to avoid conflicts of interest or to represent positions that run counter to the respective client's public orientation. The instructing investor thus remains anonymous. In contrast to other shareholder associations, VIP does not issue recommendations for a particular voting behaviour before an AGM and does not collect proxy orders from shareholders who wish to align with VIP's positions. VIP exercises voting rights strictly according to the instructions of its clients and modifies voting behaviour in consultation with the client up to ten minutes before the vote.

• VIP is registered as a German voluntary association (eingetragener Verein) and operates offices in Bonn, Cologne and three further locations.

• VIP becomes a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and a signatory of the Principles for Responsible Investment (PRI).

• VIP accumulates experience of more than 1800 annual general meetings as an independent physical proxy agent.

Independent physical proxy agent and shareholder association standing for best practice in sustainable, ethical corporate governance and SRI/ESG; the voice of the owners, ordered and paid by the owners.

• Physical proxy representation at AGMs

  VIP attends annual general meetings as an active, publicly operating physical proxy agent on behalf of institutional investors.

• Proxy voting services

  VIP exercises voting rights strictly according to client instruction, modifying voting behaviour in consultation with the client up to ten minutes before the vote.

• Voting guidelines and reports

  VIP provides voting guidelines and reports as part of its modular service offering.

• Speaking and counter-motion representation

  VIP speaks on discharge votes and counter-motions at AGMs on behalf of beneficial owners.

1. 1V I P - Vereinigung Institutionelle Privatanleger - Bonn (Home)vipsight.eu
2. 2V I P - Vereinigung Institutionelle Privatanleger - Bonn (About)vipsight.eu
3. 3V I P - Vereinigung Institutionelle Privatanleger - Bonn (Services)vipsight.eu
4. 4Wikidata: association of institutional shareholderswikidata.org
5. 5Wikipedia (de): Vereinigung Institutionelle Privatanlegerde.wikipedia.org