Two years on, funds’ voter choice plans lack attention, influence

Programs aren’t necessarily a force for good.

This column is for Callaway Climate Insights subscribers only, but it’s OK to share once in a while. Was it shared with you? Please subscribe.

Image: Have a nice day – stock.adobe.com

(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

CHAPEL HILL, N.C. (Callaway Climate Insights) — Though voting choice programs at the largest asset management firms have grown markedly over the past couple of years, it’s not clear the climate will be any better off.

I’m referring to programs in which these firms give fund shareholders the ability to indicate how they want to vote on shareholder resolutions at the companies whose stocks those funds own. BlackRock, BLK 0.00%↑ the largest fund management firm with approximately $10 trillion in assets under management, inaugurated such a program in 2022. Other U.S. firms that have similar program include Vanguard, Schwab SCHW 0.00%↑ and State Street STT 0.00%↑.

When I last wrote about these programs two years ago I focused on a number of challenges and obstacles that they faced. Here’s an update on how these challenges and obstacles have been addressed.