Mutual funds, it seems, tend not to try to rock the corporate boat. That is the key finding of a new study reported on in the Wall Street Journal
According to the new study by Corporate Library, the asset managers they studied sided with management in 92 percent of votes from July 2004 to June 2005, but sided with shareholder resolutions only 30 percent of the time. The study notes that Glass Lewis & Co. recommendations for the same time period would've instead yielded positive votes in 80 percent and 53 percent of the cases, for management- and shareholder-proposed resolutions, respectively.
However, the Journal also reports that studies from the University of Michigan and Baruch College found that fund companies don't appear to be entangling their votes with any of their other business interests, like retirement plan recordkeeping.
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