The fact that fund companies are increasingly voting their proxies in favor of management proposals may be disappointing to shareholder advocates but it comes as no surprise to them.

Fund companies continued to vote their proxies overwhelmingly in support of management in 2006, supporting 92% of management-sponsored proposals but only 37% of shareholder-sponsored recommendations. Even the fund company that voted the least frequently in favor of management's proposals, Putnam Investments, voted with them 79% of the time. American Funds voted the most often with management-97% of the time.

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