Mutual Fund Voting & Disclosures — Q&A

One vote for each dollar invested in the fund. A “majority of shareholder votes” means majority of voting power, not majority of individual shareholders.

Shareholders (majority of votes). The initial contract can last no more than two years.

Either the BOD or a majority of shareholder votes — only one approval is required, not both. Renewals are annual.

At least 40% independent; no more than 60% interested. Independence requires no related business with the sponsor, adviser, or affiliates in the past two years.

Changes to the fund’s objective, structure, fee schedule (e.g., 12b-1 fees), and diversified status.

No. The BOD approves distributions. Shareholders have the right to receive distributions on a pro-rata basis but do not vote on whether they are made.

At or before a solicitation (recommendation), or by settlement of the purchase if the purchase is unsolicited.

The SAI is not automatically delivered but must be available upon request. It provides micro-details on policies, investment decisions, financials, and board backgrounds.

The annual report is filed with the SEC (regulators) and includes market recaps and fund manager comments. The semi-annual report goes to shareholders and overlaps on investment summary, financial statements, and highlights but lacks those extra items.