Many investors are surprised when they begin receiving proxy voting materials, especially if they previously worked with a brokerage firm that seemed to “handle it automatically.” At Fairvoy Private Wealth, we take a different approach that aligns with our fiduciary duty and respects your rights as the owner of your investments. This post explains why you may now be receiving proxy notices, how voting works, why some RIAs choose not to vote on behalf of clients, and what your options are if you’re unsure how to vote.
Understanding these points helps you make informed decisions without feeling pressured or confused.
What Is Proxy Voting?
When you own shares of a public company or a registered investment fund, you receive certain rights with one of the most important being the ability to vote on issues related to corporate governance and fund management. These decisions often include electing directors, approving fund changes, or ratifying auditors. Rather than attending shareholder meetings in person, most investors vote by proxy, which simply means submitting your vote electronically, by phone, or by mail.
Why You May Not Have Received Proxy Notices in the Past
Clients moving from some brokerage firms often tell us they never received proxy materials before joining Fairvoy. This is usually because many brokerage firms use a process called “discretionary voting,” where the firm votes on certain routine matters on your behalf. Although the rules around this have tightened over the years, brokerage firms historically exercised more discretion to vote client shares, especially on non‑controversial or administrative issues.
As an independent fiduciary RIA, Fairvoy does not take that approach.
Why Fairvoy Does Not Vote Proxies on Clients’ Behalf
Voting is a shareholder right, and exercising it on your behalf can create both real and perceived conflicts of interest. RIAs generally fall into two categories:
1. Firms that take full discretionary responsibility for voting client proxies.
2. Firms that leave proxy voting to the client.
Fairvoy follows the second model for several important reasons:
• Respect for shareholder rights. The ability to vote is tied to your ownership. We believe it is your voice, not ours, that should be represented.
• Avoiding conflicts of interest. Voting on a client’s behalf can raise questions about whether the advisor is voting in the client’s best interest or in alignment with the firm’s preferences or relationships.
• Alignment with fiduciary principles. Our role is to help you understand the purpose of a vote, not to influence or decide the outcome.
• Transparency. When you vote directly, the process is clear, and there is no ambiguity about how your shares were handled.
For these reasons, you will receive proxy notifications directly from the custodian, the fund company, or a third‑party proxy service.
Why You May Receive Phone Calls About Voting
Federal regulations encourage shareholder participation to ensure that decisions affecting funds and companies are made with adequate representation. If quorum is not met, the company or fund must continue outreach, which can include:
• Email reminders
• Mailed notices
• Phone calls from proxy solicitation firms
These calls are allowed under SEC rules and are not sales calls. Their purpose is simply to help the company meet quorum requirements. You are never required to discuss how you intend to vote.
What Happens If You Choose Not to Vote?
If you do not vote, your shares are simply excluded from the count. They do not automatically vote “with management” or “against management.” Low participation can delay decisions and may trigger repeated outreach.
That said, you always have choices, even if you’re unsure how to interpret the issues.
What If You Don’t Feel Knowledgeable Enough to Vote?
Not every proposal is easy to understand, and many clients feel unsure about the details. If you do not want to vote “For” or “Against,” most ballots allow you to select “Abstain.”
Choosing Abstain communicates that you received the notice and participated in the process, but you prefer not to vote on the substance. Importantly:
• Abstaining typically satisfies the participation requirement.
• In most cases, it stops further reminders or phone calls.
• Your shares will not be counted for or against the proposal.
If in doubt, Abstain is a reasonable option when you simply want the communications to stop without influencing the vote itself.
How to Vote Your Proxy
Voting is straightforward and only takes a few minutes. You will receive:
• A control number
• A link to the voting portal
• Phone instructions
• Optionally, a paper ballot
You can vote online, by email link, by automated phone system, or by mail. You are not required to read every page of supporting material, though summaries are included.
Final Thoughts
At Fairvoy Private Wealth, we want you to feel informed and confident, not overwhelmed, when proxy notices arrive. You now receive these because you, not the advisory firm, hold the voting authority. This honors your ownership and aligns with our fiduciary commitment to you.
If you ever receive a proxy notice that is unclear or unfamiliar, our team is always available to explain the purpose of the vote and help you understand what is being asked. The final decision, however, always remains in your hands.