DEF 14A: Advent Convertible and Income Fund Announces Annual Meeting of Shareholders

Advent Convertible and Income Fund will hold its annual shareholder meeting on September 10, 2024, to elect trustees and conduct other business.

Summary

• Advent Convertible and Income Fund (NYSE: AVK) is holding its Annual Meeting of Shareholders on September 10, 2024, at 10:00 a.m. Eastern Time.
• The meeting will be held via telephone conference call, and shareholders cannot attend in person.
• The primary purpose of the meeting is to elect Mr. Tracy V. Maitland and Mr. Ronald A. Nyberg as Class III Trustees, with terms expiring at the 2027 annual meeting.
• Shareholders of record as of July 25, 2024, are entitled to vote.
• The Board of Trustees unanimously recommends voting FOR the election of the nominees.
• Shareholders must register for the conference call by September 6, 2024, to participate.
• The Fund's shares outstanding as of the record date were 34,593,769.
• The cost of soliciting proxies will be borne by the Fund.

Sentiment

Score: 7

Explanation: The document is a standard proxy statement, indicating a neutral to slightly positive sentiment due to the routine nature of the meeting and the Board's recommendation to vote for the nominees.

Positives

• The Board of Trustees unanimously recommends voting FOR the election of the Trustee nominees, indicating confidence in their abilities.
• The meeting is being held via telephone conference call, which provides expanded access, reduces environmental impact, and offers cost savings.
• Shareholders have the opportunity to submit questions to be addressed during the meeting.

Negatives

• Shareholders cannot attend the Annual Meeting in person, limiting direct interaction with the Board.
• Shareholders must register by September 6, 2024, to participate in the teleconference, which may exclude some shareholders.

Risks

• The Control Share Statute could impact potential acquisitions of the Fund's shares, creating uncertainty for investors.
• Uncertainty exists around the general application under the 1940 Act of state control share statutes as a result of recent federal and state court decisions.

Future Outlook

The Board intends to continue to monitor developments relating to the Control Share Statute and state control share statutes generally.

Management Comments

• The Board believes that the Trustees have balanced and diverse experiences, skills, attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.
• The Board has determined that its leadership structure is appropriate because it allows the Board to exercise informed and independent judgment over the matters under its purview.

Industry Context

Closed-end funds are required to hold annual meetings to elect trustees, as mandated by the NYSE and the Funds Agreement and Declaration of Trust.

Comparison to Industry Standards

• The proxy statement adheres to SEC regulations, providing shareholders with necessary information to make informed voting decisions.
• The structure of the Board, with a majority of independent trustees and designated committees, aligns with common governance practices in the investment company industry.
• The disclosure of audit and non-audit fees paid to the independent auditors is standard practice for registered investment companies.

Stakeholder Impact

• Shareholders have the opportunity to influence the governance of the Fund by voting on the election of Trustees.
• The outcome of the vote could impact the Funds strategic direction and oversight.

Next Steps

• Shareholders should review the proxy statement and vote on the proposal.
• Shareholders who wish to participate in the teleconference must register by September 6, 2024.
• The Board will continue to monitor developments related to the Control Share Statute.

Key Dates

Keywords

Annual Meeting, Shareholders, Trustees, Proxy Statement, Advent Convertible and Income Fund, AVK, Election, Governance