David Wright
Zenith has announced it will now provide formal recommendations on how financial advisers should vote in the best interests of their clients on investment matters that require an investor vote.
The growth in investment vehicles has underpinned an increase in investment managers requiring unit holders to approve material changes, such as changes to the investment manager, strategy, fees, and for listed vehicles, M&A activity.
Zenith believes the market has now reached a tipping point where advisers are increasingly being asked by their clients which way they should vote for a proposed change, often with limited time to decide and with extensive documentation to read.
For example, WAM Capital Limited’s current bidder’s statement for Wealth Defender Equities Ltd is an 84-page document that advisers need to absorb and interpret before deciding if the move is in the best interests of their client base. And it doesn’t stop there, as they will then need to decide what decision will be best for individual clients once the voting results are formalised.
Zenith Managing Partner David Wright said “While Zenith has provided voting advice on a case-by-case basis for many years, we have recognised the need for Zenith to fully commit to this pledge in supporting the best interest duty of our adviser clients. Our goal is to free up time for advisers and equip them with the tools to make an informed decision for their clients.”
Zenith is currently preparing a voting recommendation for its advice client base covering Wealth Defender Equities Ltd.
