TheCorporateCounsel.net

Speaking of proxy voting, Vanguard announced yesterday that is adopting a pilot program to allow retail investors in certain of its index funds greater say in how their shares are voted. Here’s an excerpt from Bloomberg’s report on the program:

Vanguard Group is planning a trial to give retail clients more say over how their shares are voted at corporate meetings, as large money managers’ influence over hot-button issues faces mounting scrutiny. Instead of making decisions exclusively on its own, Vanguard will give individual investors in several equity index funds more options about how their shares are voted, the Valley Forge, Pennsylvania-based company said Wednesday in a statement. It will begin testing the strategy early next year.

Under the program, Vanguard will offer investors in selected equity index fund a menu of voting options. These include following the board’s recommendations, choosing to rely on third party guidance or opting not to vote. Vanguard’s action follows on BlackRock’s implementation of its “Voting Choice” program that allows institutional investors to vote the shares they own in BlackRock’s index funds. BlackRock announced that program in the fall of 2021 and began its rollout earlier this year, but as Liz blogged back in June, that program is expanding rapidly.  Whether Vanguard will move as quickly on the retail side remains to be seen.

– John Jenkins