NICSA 2016 Strategic Leadership Forum Breakout Session | Sponsored by Boston Financial

1. Proxy Advisory Firms –
Understanding the Impact

2. Today’s Panel
Cindi Boudreau, Managing Director, Proxy Solutions
Boston Financial Data Services, Inc - Moderator
Robert McCormick, Chief Policy Officer
Glass Lewis & Co.
Patrick McGurn, Special Counsel and Head of Strategic
Research and Analysis
Institutional Shareholder Services

3. Introduction to Advisory Firms
• Advisors help investors review, analyze and
make voting decisions
• Many clients maintain their own policies
• Many clients use multiple advisors
• Advisors identify areas of concern for clients
to review more closely
• Advisors review mutual fund meetings
based on specifics of the proposals
• Close attention to
• Change in fees
• Change in investment focus
• Fund mergers
Analyze
Company
Meetings
Analyze
Mutual Fund
Meetings $

4. Interaction/Engagement
• Connecting with us
• Timing
• Preparation
• Identify who makes the voting
decisions, e.g. governance analysts
• Engage with the appropriate analysts
well before meeting
• Clearly explain voting issues in proxy
• Avoid boilerplate
• Follow up with analysts close to
meeting date
By Mutual
Funds With Clients
of the Advisory Firm
With Mutual
Funds Holding a
Shareholder Meeting

5. Analysis Process – MF Proposals
Research
Team
• Key analyst(s)
Voting
Guidelines
• Generally case-
by-case
• Multiple
factors
considered
Outreach/
Engagement
• Before publication
• After publication

6. Voting Process
• Advisor casts/executes the
vote
• Based on client instructions
or custom policy
• Client receives
recommendation and makes
their own decision
Mechanics

7. Closed-end Funds
• Dissidents
• Contests
• Preferred Shares
Unique situations

8. What’s Next
Enhancements Additional Services

9. ?Questions
Thank you for attending our session
on Proxy Advisory Firms