SEC Form N-PX Definition

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What is SEC Form N-PX?

SEC Form N-PX is a filing form required by the United States Securities and Exchange Commission (SEC) for registered management investment companies to disclose their proxy voting records. This particular form is used by mutual funds, closed-end funds, and exchange-traded funds (ETFs) to report how they cast their votes on various corporate governance matters.

Why is SEC Form N-PX Important?

SEC Form N-PX is an important filing requirement for investment companies because it promotes transparency and provides shareholders with important information about how their funds are being managed and the voting decisions made on their behalf. By filing this form, investment companies are required to disclose their proxy voting records, including how they voted on matters such as election of directors, executive compensation, and proposals regarding mergers and acquisitions.

For investors, the information provided in SEC Form N-PX can be key to understanding how their funds are being managed and whether the investment strategy aligns with their own values and beliefs. It allows investors to make informed decisions about where to invest their money and provides them with insights into the fund’s stewardship and engagement with the companies they invest in.

What Information is Included in SEC Form N-PX?

SEC Form N-PX requires investment companies to disclose the following information:

1. The types of securities the investment company is authorized to vote on behalf of its shareholders.
2. A list of all the funds managed by the investment company.
3. A description of the policies and procedures used in voting, including whether the investment company relies on the recommendations of an external proxy voting service.
4. The number of votes cast on each matter.
5. How the investment company voted on each matter, including for, against, or abstained.
6. Explanations for any votes against management recommendations.

Conclusion

SEC Form N-PX is a crucial filing requirement that promotes transparency and helps investors make informed decisions about their investments. By disclosing proxy voting records, investment companies provide shareholders with insight into their voting decisions on key corporate governance matters. Understanding this information allows investors to evaluate the fund’s stewardship and alignment with their values. So, next time you come across SEC Form N-PX, remember that it’s not just another document to skim through, but rather a valuable resource for evaluating your investments.