Why Am I Receiving Calls About My Investments or Voting?
If you've recently received an unexpected phone call, text message, or mailing regarding an investment you own about an upcoming election, you're not alone. Many investors and voters are noticing a significant increase in outreach efforts. While these contacts can sometimes feel intrusive, understanding why they occur can help make sense of the experience.
Increased Investor Outreach Driven by Corporate Activity
In recent years, merger and acquisition activity, corporate reorganizations, fund changes, and shareholder votes have led to an increase in communications directed at investors. When companies need shareholder approval for corporate actions, they often hire specialized proxy solicitation firms to encourage investor participation in the voting process. These firms may conduct mail campaigns, email outreach, and telephone calls to shareholders in an effort to achieve the necessary voting thresholds for a proposal.
Many investors are surprised that these firms know their names and addresses, and may even have access to phone numbers. Solicitation companies often use publicly available records, shareholder data permitted under applicable regulations, and sophisticated data-matching tools to locate contact information and increase response rates.
One common question we receive is: "What should I do when they call?"
In most situations, financial advisors are not permitted to instruct clients how to vote on corporate proxy matters. The decision belongs to the shareholder, and any vote should be based on the information provided in the official proxy materials and your own assessment of the issues being presented.
While we can often help explain what a proxy vote is or why you may be receiving communications, the voting decision itself remains at the discretion of the shareholder.
You Have the Right Not to Participate
If you do not wish to engage with a solicitation firm, there may be protections available under solicitation rules. In many cases, you can request not to be contacted again. Once such a request is communicated, the firm is required to honor that request and cease future outreach regarding that solicitation. If you are unsure whether a caller is legitimate, exercise caution.
Similar Tactics Are Being Used in Political Campaigns
Investors are not the only individuals experiencing increased outreach. As election activity intensifies, political organizations and advocacy groups also use data-driven approaches to identify and contact potential voters.
Many voter registration records are publicly available, and campaign organizations routinely supplement those records with commercially available demographic and contact information. This allows campaigns to conduct highly targeted mailings, text messaging campaigns, phone calls, and digital advertising efforts aimed at increasing voter participation.
As with shareholder solicitation efforts, the goal is often simple: encourage participation. Whether the objective is obtaining a shareholder vote or increasing voter turnout, organizations increasingly rely on sophisticated data tools to reach individuals directly.
The Bottom Line
The rise in unsolicited calls, emails, and mailings is largely a result of greater reliance on data-driven outreach strategies. Increased merger and acquisition activity has created more shareholder voting events, while election cycles continue to drive political outreach efforts.Although these contacts can be frustrating, understanding their purpose can help you navigate them more confidently.
Too Long Didn’t Read (TLDR):
Shareholder outreach is often related to proxy voting requirements.
- Financial advisors generally cannot direct clients how to vote on corporate matters.
- You can ask solicitation firms not to contact you again.
- Political organizations use many of the same data-driven techniques to connect with potential voters.
- Always exercise caution before sharing personal information with any unsolicited caller.
Best,
Garrett