Over the past five decades, innovation and technology have led to a greater choice and democratizaton in investing strategies, structures, and products. Today's investors can choose among thousands of low-cost, high-quality choices across asset classes and markets. BlackRock believes that greater choice should extend to proxy voting. We launched BlackRock Voting Choice in the beginning of 2022 to make proxy voting easier and more accessible for eligible institutional clients and are committed to a future where every investor can participate in the shareholder voting process.
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 institutional clients can choose one of four options:1
This option gives institutional clients in certain institutional pooled vehicles the ability to apply their preferred voting policy, meaning the client has either one that they have designed themselves or has chosen a third-party policy, in a consistent way across a broader share of their overall portfolio allocation, and to exercise a high degree of control over the decision-making process and the voting implementation. Clients would 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 policy. Either way, the client bears the cost.
This option gives clients in separately managed accounts (SMAs) who have authorized BlackRock to vote in accordance with its own policy, or a third-party policy offered through Voting Choice, 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 institutional clients in pooled vehicles.
This option gives institutional clients in both SMAs and certain pooled vehicles the ability to vote in accordance with an off-the-shelf voting policy from third-party proxy advisers, choosing the policy that best aligns with their views and preferences.
This option gives institutional clients the choice to rely on BlackRock 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 (“BIS”) to vote in the client’s long-term economic interests.
1Institutional SMA clients have the opportunity to vote eligible proxies for the companies in which they are invested. Investors in eligible pooled funds will have the opportunity to direct voting on eligible proxies in eligible markets for companies held by the funds. 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.
Source: BlackRock. Client participation data as of June 30, 2023. AUM figures as of June 30, 2023. All currency shown in USD. Index 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.
We offer a wide range of Voting Choice policies through Institutional Shareholder Services (ISS) and Glass Lewis.
ISS Policies
Glass Lewis Policies
BlackRock Voting Choice is a proprietary offering leveraging technology and innovation that provides our eligible institutional clients with more opportunities to participate in proxy voting where legally and operationally viable.
Voting Choice is available for institutional clients invested in certain institutional pooled funds in the U.S., U.K., Ireland, and Canada that utilize equity index investment strategies, as well as clients in certain institutional pooled funds in the U.S., U.K. 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 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 the consent of clients, 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. As the growth of Voting Choice highlights, many asset owners are investing in their stewardship capabilities and embracing this technology on behalf of their beneficiaries. As we have in many other important industry innovations, BlackRock continues to lead from the front to ensure we are consistently staying ahead of the needs of our clients.
Larry discusses enhancing governance by injecting important new voices into shareholder democracy.
This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.
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