Mutual Neglect: How the Largest Institutions in the Stock Market Ignore Health Problems and Financial Threats Stemming From Toxi

Toxic chemicals in products may create liabilities for companies and their shareholders. This report reviews the voting records of major mutual funds — the largest category of institutional shareholders in U.S. stock markets, collectively holding more than one third of assets invested in U.S. companies — on shareholder resolutions introduced in 2006-2007 addressing toxic chemical issues. This report examines proxy voting records of 64 major families of mutual funds on 15 toxics-related shareholder resolutions. Most major funds routinely vote against or abstain from voting on these resolutions. The report notes, however, encouraging signs at pension fund TIAA-CREF and at large government employee pension funds and in guidelines from proxy voting advisory service Institutional Shareholder Services. The report offers recommendations to the mutual fund industry and to investors in mutual funds.