Bringing you live news and features since 2006 

State Street Global Advisors to extend proxy voting choice to ETFs and mutual funds

RELATED TOPICS​

State Street Global Advisors, the asset management business of State Street Corporation, has announced it will offer more investors, including those owning its US ETFs and US mutual funds, the power to choose a voting policy that directs the proxy votes of shares owned in the index equity funds in which they are invested.

The current program will expand to provide investors in all US institutional index equity funds offered by the firm in the US a range of voting policies so they can choose to direct how shares owned by the funds are voted.

Additionally, the firm writes that by partnering with a financial technology provider, State Street Global Advisors will give investors in certain US equity index SPDR ETFs and US mutual funds managed by the firm, which primarily hold US securities, the ability to direct the voting of the shares owned by those funds by giving investors in those funds the power to choose a proxy voting policy that applies to the voting of shares held by the funds.

The firm’s goal is to include all eligible index equity US SPDR ETFs and US mutual funds managed by the firm in the proxy voting program by the end of 2024.

“As the pioneering force behind many of the world’s first ETFs, we are proud to present yet another innovation that amplifies our ongoing mission to democratize investing,” says Yie-Hsin Hung, CEO of State Street Global Advisors. “By empowering individuals with the choice to direct the vote of the shares they own through an ETF or mutual fund, we are placing a powerful tool directly in their hands.”

In December 2022, State Street Global Advisors announced its initial expansion of proxy voting choice to 49 per cent of eligible index equity assets in separately managed accounts and certain institutional funds in the US and UK. With this new expansion, investors in 82 per cent of eligible index equity assets managed by the firm will have the ability by the end of the year to make choices in how shares held in the funds and separately managed accounts they own are voted.

The voting policies investors may choose from to direct the voting of shares held by the funds in which they are invested will be made available through Institutional Shareholder Services (ISS), a recognised independent proxy voting provider.

Similar to separately managed accounts, shareholders of institutional funds that are eligible for the program can continue to delegate their votes to the State Street Global Advisors Asset Stewardship team by choosing not to opt in to the firm’s proxy voting program and have State Street Global Advisors continue to vote the shares held by the funds in which they are invested.

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by