IRRC-Tapestry Report: “Voting Decisions at US Mutual Funds: How Investors Really Use Proxy Advisers”

Key findings of the interview-based research include:

1. Proxy firms’ role as data aggregators become increasingly important to asset managers
2. Proxy advisers’ influence extends well beyond the moment of voting, but mutual funds consider multiple factors
3. Asset managers have wide range of approaches to decision-making across the voting process
4.Three questions about level of internal deliberation on voting matters can help outside observers evaluate independence of asset managers' decisions
5. Most asset managers find proxy firm data particularly useful for say-on-pay and international votes – but even in these areas, reliance on proxy advisers varies and is not exclusive
6. The demand for investor-issuer engagement will continue to grow, but its impact on the proxy advisory industry is unclear

Registered users can download the full report here:
http://bdti.or.jp/english/data_library#gallery-655f89095c8b4a2c90d2b1bac85607f7bf98d880706a957d2bb66b9bbe4f6228

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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