State Street Global Advisors (SSGA) has launched a trial of its proxy voting choice programme for its $9bn MSCI world ETF.
In a shareholder notice, SSGA said it would launch a pilot programme – expected to last one year – which will give shareholders of the SPDR MSCI World UCITS ETF (SWRD) the option to choose how their proxy votes are cast.
Investors will be given the option to either choose a voting policy that aligns with their views or rely on SSGA to vote their shares.
The programme currently has a focus on US-listed passive ETFs and mutual funds, with SSGA expanding the range of passive ETFs and mutual funds under the programme in May last year.
It was initially rolled out in December 2022 and made SSGA the last of the ‘Big Three’ to introduce corporate proxy voting powers to investors, following BlackRock and Vanguard.
The initiative works by giving clients the option to select a voting policy made available through proxy voting provider Institutional Shareholder Services (ISS).
There are eight voting policies, with the eighth introduced in November 2023, which allows investors to vote in line with a company board of director’s recommendation.
Alternatively, shareholders can also opt to have SSGA’s Asset Stewardship team vote on their behalf.
More recently, BlackRock expanded voting choice for its S&P 500 ETF to millions of US retail investors after facing criticism that the asset manager has too much power over US companies.
SSGA previously said it plans to include all eligible US-listed passive ETFs and mutual funds in its voting choice programme by the end of 2024.
