Mutual Fund Directors Forum Issues Report on Proxy Voting Practices
The Mutual Fund Directors Forum has issued a report on proxy voting outlining the common proxy voting models and procedures and concepts boards should consider. The report outlines three basic proxy voting models: Board retaining all proxy voting authority, Board delegating to adviser, and Board delegating to a proxy service vendor. The report provides a description of all three models. The paper also explores factors that boards should consider: investment professional input, overrides, splitting votes, engagement with portfolio companies, and conflicts of interest.