Closed End Mutual Funds
There is no such thing as a routine annual Closed End Fund meeting anymore. Shareholder activism has become more than just an annoyance; increasingly it threatens to impact you and your Board of Directors and the way you run your fund. In this environment it is critical to get the best solicitation firm available to help you prepare and protect your business. In both their scale and focus, shareholder proposals are receiving increased support from shareholders and influential institutional proxy advisors. As a result, it is critical that fund administrators are apprised of this shifting corporate governance landscape and receive timely, accurate intelligence to maximize positive shareholder support while minimizing the potential of unforeseen surprises.
The senior advisors at Laurel Hill have extensive experience and understanding of
this complex environment. We will provide expert guidance to ensure your agenda
items receive the highest level of support while continuously monitoring for any
possible concerns, thus allowing your fund’s administrative team to focus on other
important issues.
The first step in any successful solicitation is to identify a fund’s key shareholders and
how they will vote on various issues. Accordingly, we will, on your behalf, analyze the
draft proxy and provide recommendations for fine-tuning items that might initially
receive opposition from either major institutional holders, proxy advisory firms
(Risk-Metrics, Glass Lewis, etc.) or other shareholder groups. We will create initial vote projections based on our transactional experience with institutional and retail voting
patterns. We will also assist you in creating and executing the best solicitation approach to be used for addressing major institutional holders, as well as key registered and
beneficial holders. Laurel Hill will monitor the recommendations of institutional proxy advisory firms such as RiskMetrics and provide concise tactical advice in the case of
adverse recommendations, as well as assist in negotiations as warranted.
Laurel Hill will report on the progress of your Closed End Fund meeting, identifying
institutional votes as they are cast. Our outbound call capacity and in-house inbound
call center will provide invaluable feedback on shareholder sentiment.
The Laurel Hill Advisory Group, LLC’s Mutual Funds division is not just there to get in the vote, we are here to provide valued advice throughout the year.