Special Report: Mutual Funds Voting Pattern 2013 Analysis

 

InGovern Research Services released its special report on “Mutual Funds Voting Pattern 2013 Analysis”.

In its third edition of this special report titled “Mutual Funds Voting Pattern 2013 Analysis”, InGovern has analyzed the proxy voting patterns of Indian mutual funds as per disclosures made by the respective AMCs for the year 2012-13. The objectives of the report are:

  • To assess the pattern of voting by mutual funds in ensuring better corporate governance practices at investee companies
  • To assess the quality of reporting of voting done by mutual funds
  • To allow mutual funds to benchmark themselves against best practices amongst their peers

The report covers Annual general meetings (AGMs), postal ballots (PBs), court convened meetings (CCMs) and extraordinary general meetings (EGMs) of the investee companies between April 2012 and March 2013.

 

Key Highlights of the Report:

  • Indian mutual funds are still largely passive and/or indifferent while voting at investee company shareholder meetings
  • No significant improvements in voting participation by AMCs in shareholder meetings compared to previous 2 years
  • 2 out of 43 mutual funds completely abstained from any voting for FY2012–2013 and hence have not made any voting disclosures
  • Some of the mutual funds have disclosed their voting information incorrectly even in the 3rd year of reporting
  • Only 1.5% of total resolutions put forth by investee companies have been voted AGAINST by  mutual funds
  • Mutual funds voted FOR in 47.0% of the resolutions and abstained from voting in 51.5% of the resolutions
  • Some level of participation by mutual funds seen in resolutions that came under larger public scrutiny post negative recommendations from InGovern
  • Need for mutual funds to adopt a more detailed set of voting policy guidelines to ensure better corporate governance practices at investee companies
  • More regulatory oversight required for better institutional investor participation in shareholder meetings

 
Download Full Report: Mutual Funds Voting Patterns 2013 Analysis