EXHIBIT (c)
PROXY VOTING POLICY
Thompson, Siegel & Walmsley LLC (TS&W) acknowledges it has a fiduciary
obligation to its clients that requires it to monitor corporate events and vote
client proxies. TS&W has adopted and implemented written policies and procedures
reasonably designed to ensure that proxies for domestic and foreign stock
holdings are voted in the best interest of our clients on a best efforts basis.
TS&W recognizes that it (i) has a fiduciary responsibility under the Employee
Retirement Income Securities Act (ERISA) to vote proxies prudently and solely in
the best interest of plan participants and beneficiaries (ii) will vote stock
proxies in the best interest of the client (non-ERISA) when directed (together,
our "clients"). TS&W has developed its policy to be consistent with, wherever
possible, enhancing long-term shareholder value and leading corporate governance
practices. TS&W has retained the services of Institutional Shareholder Services
("ISS") which is an indirect wholly-owned subsidiary of Risk Metrics Group, Inc.
("RMG"). ISS is a Registered Investment Adviser under the Investment Advisers
Act of 1940. As a leading provider of proxy voting and corporate governance
services with 20+ years of experience, ISS serves more than 1,700 institutions.
ISS's core business is to analyze proxies and issue informed research and
objective vote recommendations for more than 38,000 companies across 115 markets
worldwide. ISS provides TS&W proxy proposal research and voting recommendations
and votes accounts on TS&W's behalf under the guidance of ISS's standard voting
guidelines which include:
o Operational Issues o Corporate Responsibility
o Board of Directors o Consumer Issues and Public Safety
o Proxy Contests o Environment and Energy
o Anti-takeover Defenses and Voting Related Issues o General Corporate Issues
o Mergers and Corporate Restructurings o Labor Standards and Human Rights
o State of Incorporation o Military Business
o Capital Structure o Workplace Diversity
o Executive & Director Compensation o Mutual Fund Proxies
o Equity Compensation Plans
o Specific Treatment of Certain Award Types in Equity Plan Evaluations
o Other Compensation Proposals & Policies
o Shareholder Proposals on Compensation
TS&W's proxy coordinator is responsible for monitoring ISS's voting procedures
on an ongoing basis. TS&W's general policy regarding the voting of proxies is as
follows:
PROXY VOTING GUIDELINES:
Routine and/or non-controversial, general corporate governance issues are
normally voted with management; this would include the Approval of Independent
Auditors.
Occasionally, ISS may vote against management's proposal on a particular issue;
such issues would generally be those deemed likely to reduce shareholder control
over management, entrench management at the expense of shareholders, or in some
way diminish shareholders' present or future value. From time to time TS&W will
receive and act upon the client's specific instructions regarding
proxy proposals. TS&W reserves the right to vote against any proposals motivated
by political, ethical or social concerns. TS&W and ISS will examine each issue
solely from an economic perspective.
o A complete summary of ISS's voting guidelines, domestic & foreign, are
available at:
www.issproxy.com/issgovernance/policy/2007policy.html
CONFLICTS OF INTEREST
o Occasions may arise during the voting process in which the best
interest of the clients conflicts with TS&W's interests. Conflicts of
interest generally include (i) business relationships where TS&W has a
substantial business relationship with, or is actively soliciting
business from, a company soliciting proxies (ii) personal or family
relationships whereby an employee of TS&W has a family member or other
personal relationship that is affiliated with a company soliciting
proxies, such as spouse who serves as a director of a public company.
A conflict could also exist if a substantial business relationship
exists with a proponent or opponent of a particular initiative. If
TS&W determines that a material conflict of interest exists, TS&W will
instruct ISS to vote using ISS's standard policy guidelines which are
derived independently from TS&W.
PROXY VOTING PROCESS:
o Upon timely receipt of proxy materials, ISS will automatically release
vote instructions on client's behalf as soon as custom research is
completed. TS&W retains authority to override the votes (before
cut-off date) if they disagree with the vote recommendation.
o The Proxy Coordinator will monitor the voting process at ISS via
Governance Analytics website (ISS's online voting and research
platform). Records of which accounts are voted, how accounts are
voted, and how many shares are voted are kept electronically with ISS.
o For proxies not received at ISS, TS&W and ISS will make a best efforts
attempt to receive ballots from the clients' custodian.
o TS&W will be responsible for account maintenance - opening and closing
of accounts, transmission of holdings and account environment
monitoring.
o Associate Portfolio Manager (proxy oversight representative) will keep
abreast of any critical or exceptional events or events qualifying as
a conflict of interest via Governance Analytics website and via email.
TS&W has the ability to override vote instructions and the Associate
Portfolio Manager will consult with TS&W's Investment Policy Committee
or product managers in these types of situations.
o All proxies are voted solely in the best interest of clients.
o Proactive communication takes place via regular meetings with ISS's
Client Relations Team.
PRACTICAL LIMITATIONS RELATING TO PROXY VOTING
While TS&W makes a best effort to vote proxies, in certain circumstances it may
be impractical or impossible for TS&W to do so. Identifiable circumstances
include:
o LIMITED VALUE. TS&W may abstain from voting in those circumstances
where it has concluded to do so would have no identifiable economic
benefit to the client-shareholder,
o UNJUSTIFIABLE COST. TS&W may abstain from voting when the costs of or
disadvantages resulting from voting, in TS&W's judgment, outweigh the
economic benefits of voting.
o SECURITIES LENDING. Certain of TS&W's clients engage in securities
lending programs under which shares of an issuer could be on loan
while that issuer is conducting a proxy solicitation. As part of the
securities lending program, if the securities are on loan at the
record date, the client lending the security cannot vote that proxy.
Because TS&W generally is not aware of when a security may be on loan,
it does not have an opportunity to recall the security prior to the
record date. Therefore, in most cases, those shares will not be voted
and TS&W may not be able fully to reconcile the securities held at
record date with the securities actually voted.
o FAILURE TO RECEIVE PROXY STATEMENTS. TS&W may not be able to vote
proxies in connection with certain holdings, most frequently for
foreign securities, if it does not receive the account's proxy
statement in time to vote the proxy.
PROXY VOTING RECORDS & REPORTS
o The proxy information is maintained by ISS. on TS&W's behalf and
includes the following: (i) name of the issuer, (ii) the exchange
ticker symbol, (iii) the CUSIP number, (iv) the shareholder meeting
date, (v) a brief description of the matter brought to vote; (vi)
whether the proposal was submitted by management or a shareholder,
(vii) how the proxy was voted (for, against, abstained), (viii)
whether the proxy was voted for or against management, and (ix)
documentation materials to make the decision. TS&W's Proxy Coordinator
coordinates retrieval and report production as required or requested.
o Clients will be notified annually of their ability to request a copy
of our proxy policies and procedures. A copy of how TS&W voted on
securities held is available free of charge upon request from our
clients or by calling us toll free (800) 697-1056.