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To view how the Hennessy Funds voted proxies during
the most recent 12-month period click here to be transferred to the website of the Securities and Exchange
Commission to view the Form N-PX.
The proxy voting policy of the Hennessy Funds, excluding the Select SPARX Funds, is as follows:
When the Funds vote proxies relating to securities
that they own, the Funds generally follow the so-called “Wall
Street Rule” (namely, they vote as management recommends
or instruct the Manager to sell the stock prior to the meeting).
The Funds believe that following the “Wall Street Rule”
is consistent with the economic best interests of their shareholders.
Further, each of the Funds invests pursuant to investment
formulas and as such proxy issues do not factor into the investment
formula.
The proxy voting policy of the Hennessy Select SPARX Japan and Hennessy Select Japan Smaller Companies Funds, is as follows:
The Board of Trustees of the Hennessy SPARX Funds Trust has delegated authority for making voting decision with respect to the securities of those funds to the funds’ Sub-Advisor (“Sub-Advisor); SPARX Asset Management Company, Limited; located in Japan. The Sub-Advisor’s proxy voting Policy (the “Policy”) is as follows:
- The Sub-Advisor generally votes proxies in a manner consistent with decisions of its Investment Committee (the “Committee), which makes voting decisions pursuant to its Equity Voting Guidelines (the “Guidelines’), unless as otherwise permitted by the Policy (such as when specific interests and issues require that a client’s vote be cast differently from the Committee’s decision in order to act in the best economic interests of clients).
- Where a material conflict of interest has been identified and the matter is covered by the Guidelines, proxies are voted in accordance with the Guidelines. Where a conflict of interest has been identified and the matter is not covered in the Guidelines, the Sub-Advisor will disclose the conflict and the determination of the manner in which to vote to the Board.
- The Sub-Advisor may determine not to vote proxies in respect of securities of any issuer if it determines it would be in its client’ overall best interests not to vote.
The Guidelines address proxy voting on particular types of matters such as elections for directors, adoption of option plans, and anti-takeover proposals. For example, the Committee’s decisions generally will:
- support management in most elections for directors, unless there are clear concerns about the past performance of the company or the board fails to meet minimum corporate governance standards;
- support option plans that motivate participants to focus on long-term shareholder value and returns, encourage employee stock ownership and more closely align employee interests with those of shareholders; and
- vote for mergers, acquisitions and sales of business operations, unless the impact on earnings or voting rights for one class or group of shareholders is disproportionate to the relative contribution of the group or the company’s structure following the acquisition or merger does not reflect good corporate governance, and vote against such actions if the companies do not provide sufficient information upon request concerning the transaction.
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