New analysis of recent survey results from ICI finds that the US fund proxy system is increasingly inefficient, expensive, and ineffective. The growing costs involved are imposed on fund shareholders, and the Securities and Exchange Commission should reform this system.
Key Insights: The fund proxy voting system is costly and hampers fund governance and the investor experience. Smaller fund complexes are often disproportionately impacted by the burdens of proxy campaigns. The Securities and Exchange Commission (SEC) can greatly improve the fund proxy...
Closed-end funds (CEFs) trying to fend off hostile hedge funds and other activist investors are facing another headwind from an unexpected corner: proxy advisory firms. Proxy advisors, which make recommendations to institutional investors on management actions and shareholder...
Middle-Class Investment Tool Over the past 80 years, closed-end funds (CEFs) have helped millions of Americans achieve their long-term financial goals. Representing $252 billion in assets as of year-end 2022, CEFs are professionally managed, subject to a robust regulatory framework...
Washington, DC; November 2, 2022—Investment Company Institute (ICI) Deputy General Counsel for Markets Sarah Bessin released the following statement today after the Securities and Exchange Commission (SEC) adopted rule amendments on proxy voting disclosure: “The final rule the...
Proposal Poses Significant Challenges for Funds That SEC Must Address Washington, DC; December 14, 2021—The Investment Company Institute (ICI) filed a comment letter with the Securities and Exchange Commission (SEC) today saying that the agency needs to modify some of its changes to...
The Securities and Exchange Commission (SEC) can save millions of dollars for registered fund shareholders, while maintaining investor protections, by reforming the fund proxy system. The system, which funds use to solicit votes from their shareholders, poses significant challenges...
Proxy System for Funds Is Costly and Inefficient, New Report Shows Reforms Are Necessary to Improve System for Funds and Their Investors Washington, DC; December 23, 2019—The Securities and Exchange Commission (SEC) could save millions of dollars for registered fund shareholders...
Funds Take Investor-Centric, Nuanced Approach Toward Proxy Voting New ICI Report Shows Funds Vote Carefully and Conscientiously Washington, DC; July 29, 2019—Funds cast their votes on proxy proposals offered at portfolio companies in the interests of fund shareholders and consider a...
