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Proxy Voting

A fund’s board of directors, acting on the fund’s behalf, is responsible for overseeing the voting of proxies for portfolio securities. As a practical matter, fund boards typically delegate proxy voting to the fund’s investment adviser. The nature and extent of this delegation may vary. While broad delegation of proxy voting responsibilities is very common, boards may follow other approaches, such as relying on the adviser to implement a fund’s proxy voting policy but not vesting the adviser with voting discretion.

to learn more
Read the IDC/ICI paper Oversight of Fund Proxy Voting.

A fund’s board can adopt a separate fund policy or may adopt or rely on the investment adviser’s policy. A board also may elect to adopt the policy recommended by a proxy voting service. A proxy voting policy is part of a fund’s compliance program, and subject to the board approval and review requirements of the SEC’s fund compliance rule.

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