Today, investors can choose from thousands of low-cost, high-quality investment funds across asset classes and markets. BlackRock believes that greater choice should extend to proxy voting and is committed to a future where every investor can participate in the proxy voting process if they so choose.
We launched BlackRock Voting Choice in 2022 to make participation in the proxy voting process easier and more accessible for eligible clients.
BlackRock Voting Choice, an industry first and a proprietary offering, enables institutional clients to participate in voting decisions where legally and operationally viable.
Source: BlackRock. Client funds participating in BlackRock Voting Choice are as of June 30, 2023. Assets include index equity assets held in multi-asset fund of funds strategies.
Note: Newly committed Voting Choice AUM includes pooled fund clients that have elected BlackRock Voting Choice options 1 or 3 and separate account clients that have elected BlackRock Voting Choice options 2 or 3. Certain institutional pooled funds that implement Systematic Active Equity (SAE) strategies are also eligible for BlackRock Voting Choice but are not displayed in the chart. Eligible SAE institutional pooled funds and separate accounts amount to $102bn in eligible Voting Choice assets. All currency shown in USD.
Eligible clients can choose one of four options:1
Clients in certain institutional pooled vehicles have the ability to apply their preferred voting policy to shares in the pooled fund reflecting the client’s proportional ownership of that fund. Clients either develop their own processes and policies to be implemented by an in-house team or contract directly with a third-party proxy advisor to develop and implement a custom policy2. The preferred voting policy, whether designed in-house by the client or a third-party, can be applied in a consistent way across a broader share of their overall portfolio allocation, using the client’s preferred proxy voting service provider and allowing the client to exercise a high degree of control over the decision-making process and the voting implementation.
Clients in separately managed accounts (SMAs) who have authorized BlackRock to vote in accordance with BlackRock Investment Stewardship’s voting policy or a third-party voting policy offered through Voting Choice have the ability to make specific voting decisions on the topics or at the companies that matter most to them. The ability to take a hybrid approach to voting is not available to clients in institutional pooled vehicles.
Clients in eligible institutional pooled vehicles and SMAs have the ability to select from a set of voting policies from third-party proxy advisers the policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast votes based on the client’s selected voting policy.
Clients have the choice to rely on BlackRock Investment Stewardship for all of their voting decisions. Electing to rely on BlackRock to exercise voting authority is itself a choice and a deliberate decision by the client to entrust BlackRock Investment Stewardship to vote in the client’s economic interests.
1Institutional SMA clients have the opportunity to vote eligible proxies for the companies in which they are invested. Investors in eligible institutional pooled vehicles will have the opportunity to direct voting on eligible proxies in eligible markets for companies held by the pooled vehicle. BlackRock will determine eligibility criteria under this program based upon, among other things, local market regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations, including the decision to lend securities. Voting policies shall be consistent with applicable fiduciary standards.
2Client policies must seek voting outcomes consistent with the economic interests of the relevant pooled fund.
Source: BlackRock. Client participation data as of June 30, 2023. AUM figures as of June 30, 2023. All currency shown as USD. Index assets include index equity assets held in multi-asset fund of fund strategies. Note: Newly committed Voting Choice AUM includes pooed fund clients that have elected BlackRock Voting Choice options 1 or 3 and separate account clients that have selected BlackRock Voting Choice options 2 or 3.
We offer a wide range of Voting Choice policies through Institutional Shareholder Services (ISS) and Glass Lewis.
ISS Policies
Glass Lewis Policies
BlackRock believes that greater choice should extend to shareholder proxy voting and is committed to a future where every investor can participate in the proxy voting process. BlackRock Voting Choice [sometimes known as pass-through voting] provides eligible clients with more opportunities to participate in the proxy voting process where legally and operationally viable.
Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S., UK, Ireland, and Canada that utilize equity index investment strategies, as well as eligible clients in certain institutional pooled funds in the U.S., UK, and Canada that use systematic active equity (SAE) strategies. Currently, this includes over 650 pooled investment funds, including equity index funds and SAE investment funds. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for BlackRock Voting Choice regardless of their investment strategies.
To protect clients’ confidentiality, BlackRock does not disclose names of clients publicly without their consent, including Voting Choice clients.
BlackRock has seen growing interest from clients who wish to exercise their proxy voting rights as long-term owners of publicly traded companies. In response, BlackRock pioneered an industry movement by launching Voting Choice, making proxy voting easier and more accessible for eligible clients. For the many clients who choose to entrust BlackRock with voting on their behalf, we remain steadfast in our focus on their long-term financial interests, consistent with our fiduciary duty as an asset manager.
Larry discusses enhancing governance by injecting important new voices into shareholder democracy.
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