proxy voting policy

CFA Level III
#1

I dont remember where I read this but it was in context of Asset Manager Code of conduct. Can anyone explain what is this is layman terms?

#2

Manager is typically the owner of record for the shares from the company’s perspective, so manager has the voting rights associated with the shares. Basically, manager has a responsibility to investors to vote the shares to the benefit of the investors, but can skip routine votes that would require too much time (cost - benefit). I’m sure I’m missing some details, but that’s the general gist.

#3

Thanks higgmond. Now I got see the context.

#4

You must disclose the proxy voting policy to all the clients. Q#4 on the mock exam.

#5

abacus nailed the detail I forgot.

#6

You must disclose but you don’t have to vote. Cost benefit analysis.

#7

code says you must do a cba to determine a voting policy. amc says you must disclose said policy to all clients.

#8

I don’t think Asset Manager Code addresses proxy voting. The CFA Institute Standards of Professional Conduct require proxy voting unless the cost to vote the proxies under the standard of care is greater than the benefit to clients.