Shareholder Advocacy

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Shareholder advocacy is a key means by which investors can lower these risks and positively influence corporate behavior to enhance long-term shareholder value. The most visible forms of shareholder advocacy are filing shareholder resolutions (alone or as a co-filer) and proxy voting. Any shareholder with at least $2,000 in stock in a public company, held for at least one year, can file a resolution calling for the company to take a specific action. When you invest in a mutual fund that holds stock, you convey this important responsibility to your mutual fund manager, along with the right to vote your shares on corporate resolutions—a process called proxy voting. Accordingly, it is important to understand if your fund manager fully exercises their shareholder rights, whether through direct dialogue with companies, resolutions, or how they vote their proxies.

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