Morrow Sodali brings fund solicitations in house
29 January 2019 Interviews
Global proxy solicitor Morrow Sodali has hired Vincent Di Costa as
head of strategic and solicitation services for mutual and
exchange-traded funds (ETFs).
"The vision behind this business combination is very much focused on the
future and on the growing importance of retail investors," said Morrow
Sodali CEO Alvise Recchi. "Together, Morrow Sodali and Di Costa Partners
are equipped to reach the full spectrum of shareholders, regardless of
whether their shares are registered, held in street name, or through
mutual funds or ETFs."
As well as retail investors becoming a bigger factor in corporate
governance, the partnership could help Morrow Sodali win business from
funds facing activist pressure.
According to Activist Insight Online, between 16 and 23 closed-end funds
have faced shareholder pressure in each of the last five years, often
from the likes of Bulldog Investors, Karpus Investment Management, and
Saba Capital Management.
According to Di Costa, it's a common issue when funds trade at a heavy
discount to net asset value. "It really comes down to performance," he
told Activist Insight Online in an interview. "If you're not doing well
over a long period of time, that's when an activist might seek board
representation or attempt to kick off the board."
Di Costa, a 35-year veteran of soliciting investors in funds, also
told Activist Insight Online that Morrow Sodali and his firm, Di Costa
Partners, would share expertise in governance advisory and vote
projections, before adding that the partnership could also benefit from
Morrow Sodali's shareholder identification capabilities and global
reach.
For its part, Morrow Sodali is off to a good start in 2019. Its client,
Luby's, won the first major proxy contest of the year last week.
This article was originally published on Activist Insight Online: ActivistInsight.com
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