ES Votes that Matter
|Speaker:||Silvina Rubio, University of Bristol|
|Date: ||Thursday 28 May 2020|
|Time: ||15:00 - 16:30|
This paper studies voting behavior of mutual funds on Environmental and Social (ES) proposals. Funds have the fiduciary duty to vote consistent with their investors’ preferences, so ES funds and no-ES funds of the same fund family might be expected to vote differently. We provide evidence suggesting that family preferences prevail over funds’ duties when these are in conflict. We also find that ES funds in no-ES families are relatively supportive of ES proposals with small aggregate support, and they are significantly less supportive when the realized voting outcome is close to the 50% approval threshold. This voting pattern is predominantly explained by actively-managed funds.