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Mr. Grant of Pax World Funds rejected the argument that disclosing proxy votes would be expensive.
The industry had vigorously opposed disclosing proxy votes, saying the practice would increase fund costs and make fund executives the targets of special interests.
"Disclosing proxy votes creates a lot of opportunity for mischief," he said, noting that fund companies can become targets for pressure groups.
Under the new rule, mutual funds will be the only category of investors required to disclose proxy votes to the public, Mr. Fink said.
While he would not confirm this, people in the industry say Fidelity is considering disclosing proxy votes before company meetings, putting its guidelines on its Web site and even creating a fund that would invest only in companies with superior governance.
3. Disclosing proxy votes will be costly.
2. Disclosing proxy votes will destroy confidential proxy voting.
Belatedly, the SEC said last month it may require funds to disclose proxy votes.
In comments filed last week with the government, the foes of proxy disclosure make three main arguments: 1. Disclosing proxy votes will needlessly politicize fund management.
Proof that individuals can make a difference is illustrated by the proposal the Securities and Exchange Commission passed in January 2003, which states that all mutual fund companies must disclose proxy voting policies and procedures and the actual votes to their shareholders.
His company, which specializes in socially responsible investing, has disclosed its proxy votes since 1971 without incurring excessive costs.
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