Proxy Voting & Corporate Actions
Clarity regarding shareholder voting rights and legal claims.
Under the Investment Advisers Act of 1940, registered investment advisers must explicitly disclose their proxy voting policies and procedures to clients. Proxy voting allows shareholders to vote on corporate governance matters, such as electing board members, approving mergers, or authorizing corporate actions for the individual equities held within their portfolios.
To ensure clients retain full autonomy over their shareholder rights and to avoid potential conflicts of interest, Sierra Crest Advisors, LLC maintains the following policies regarding proxy voting and class action lawsuits.
1. Authority to Vote Proxies
Sierra Crest Advisors, LLC does not have the authority to, and does not, vote proxies on behalf of advisory clients. Furthermore, we do not accept the authority to advise clients on how they should vote on specific proxy solicitations. You retain the absolute right and responsibility to exercise your shareholder voting rights for the securities held in your account.
2. Receipt of Voting Materials
Because Sierra Crest Advisors does not vote proxies, you will receive your proxy materials, annual reports, and voting instructions directly from your independent qualified custodian (e.g., Charles Schwab & Co., Fidelity) or the transfer agent representing the issuer. These materials will generally be delivered via email or physical mail based on the communication preferences you established with your custodian when opening your account.
3. Class Action Lawsuits & Legal Proceedings
From time to time, securities held in your account may become the subject of class action lawsuits or other legal proceedings. Sierra Crest Advisors does not initiate, participate in, or file claims in class action settlements on behalf of clients. The responsibility for determining whether to participate in a class action, and the responsibility for gathering and submitting the necessary documentation to the claims administrator, rests entirely with the client. Your custodian can provide the transaction history required to support your claim upon request.
Advisory Support for Proxies
While Sierra Crest Advisors does not execute proxy votes or instruct you on how to vote, we remain committed to your broader financial education. If you receive a proxy solicitation and have general questions regarding the corporate action being proposed (such as a pending merger or stock split), you may contact your advisor for an objective explanation of the terms. However, the final decision on how to cast the vote remains exclusively yours.