Morrow Sodali Fund Solutions has deep experience with the governance of ETFs understanding the challenges that different ETF beneficial holders (market makers, Authorized Participants (APs), foreign institutions) present to successfully completing a proxy campaign.
Fund governance advisory
Shareholder constituency research including additional ETF market participant shareholders and foreign institutions
Long standing relationships with trading desks and 13F institutions
Scenario-based projections and analysis of proxy voting incorporating additional ETF shareholders
Outreach and engagement with proxy advisors - Institutional Shareholder Services (ISS) and Glass Lewis
Proprietary “Financial Advisor Program” to team up with large distributors to maximize retail vote participation
Strong relationships with leading law firms
Full-service proxy solicitation
Proxy statement and associated document preparation and printing
Tabulation of proxy voting and certification of results
Presentation of analytics and results to senior management and fund boards
ETFs operate very similarly to mutual funds from a governance perspective, but the shareholder profile and strategy for proxy solicitation can be very different. ETFs often have more institutional shareholders than mutual funds, as the exchange-traded nature of the products allows institutions to enter and exit the funds quickly. The market makers and other firms that trade ETFs are also beneficial shareholders and need a specialized plan for solicitation. In addition, ETFs are frequently cross-listed outside the U.S., and strategies for approaching these global institutions are unique.
Morrow Sodali Fund Solutions understands and has direct experience with analyzing and soliciting different ETF shareholders. Again, the key is conducting in depth analysis on the ETF shareholder base and selecting the fund-appropriate approach based on that fund’s precise shareholder composition.