State Street Global Advisors (SSGA) has announced its intention to offer retail investors with shares held in its U.S. index equity funds the opportunity to cast their own proxy votes.
In a Monday announcement, the $4.1- trillion fund manager revealed that all investors in its U.S. institutional index equity funds, including those owning U.S. exchange-traded funds (ETFs) and U.S. mutual funds, will have the power to “choose a voting policy” that directs the proxy votes of shares owned and invested.
The program expansion will cover more than 80% of eligible index equity assets managed by SSGA, while the voting policies investors may choose from to direct the voting of shares will be made available through proxy advisor Institutional Shareholder Services (ISS).
The fund manager’s goal is to include all eligible equity index U.S. SPDR ETFs and U.S. 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,” said Yie-Hsin Hung, SSGA CEO, in a press release. “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.”
Back in December, SSGA announced the initial expansion of its proxy voting choice to 49% of eligible index equity assets in separately managed accounts and certain institutional funds in the U.S. and U.K.
Fellow fund managers BlackRock and Vanguard have taken similar steps to empower retail investors, with Vanguard disclosing in November its intention to test a pilot program this year allowing investors in its equity index funds the ability to cast their own votes. That same month, BlackRock expanded its Voting Choice program to investors in select U.K. pooled funds.