On 23 January 2003, The US Securities and Exchange Commission (SEC) adopted new rules requiring US mutual funds and investment advisers to disclose their proxy voting policies and voting records. Thus, by consulting EDGAR ( the SEC website - www.sec.gov), shareholders will be in a position to know how mutual funds are applying the principles of corporate governance.
Socially responsible investors welcomed the new rule which favours greater transparency and improved corporate governance. The Social Investment Forum and its members have long advocated voting disclosure and many of them already publish their proxy votes and voting guidelines on a voluntary basis. Timothy Smith, President of the Social Investment Forum and Senior Vice-President of Walden Asset Management (www.socialinvest.org), Amy Domini, founder and CEO of Domini Social Investments (www.domini.com) and Nell Minow, editor of the Corporate Library (www.thecorporatelibrary.com) are amongst those who have campaigned for the adoption of such a rule.
For ethos, general implementation of the requirement to inform shareholders on the way in which voting rights are exercised is an important step towards greater transparency and accountability. It enables investors to be informed of the way in which mutual funds vote on key themes such as membership of the Board of Director, executive remuneration or important social and environmental issues.
Ethos hopes that the European regulatory authorities will soon adopt similar measures which will contribue to improving transparency and renewing investor confidence.
01/30/2003
News
