ethics, proxies

interest, managing, standard, through, ethics

Hi all,
Going through standard IIIA, loyalty, prudence and care, the curriculum says Members and candidates have a duty of loyalty to vote the best proxies for clients.

i know proxy voting means voting on behalf of a shareholder in his/her absence in a meeting.

In light of ethics, when Members and Candidates manage a portfolio, do the individual portfolios act as shares, giving the holders voting rights? And if an analyst, managing a set of portfolios has to vote for the best interest of each and every client, this will surely mean favouring some clients and disfavoring others. Can someone throw more light on how this works?
Thanks

Howd

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发表于 2011-9-23 14:17 | 只看该作者

I don't think it gets that specific as far as client suitability goes. It just says you need to vote proxies for them in their best interest, and you could also do a cost-benefit analysis as far as whether voting in every situation makes sense.

For example, if it costs you a ton of time to read through the proxy statement of whatever org change is happening at that company, which detracts from your work, it is not worth it to vote that proxy.

If it says "so and so PM didn't feel like voting proxies" then thats wrong, but if it says Johnny PM did a cost-benefit analysis and decided he didnt have the time to vote, then thats ok.

HTH

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