Broadridge's ProxyVote upgrade transforms shareholder voting with Pass-Through Voting

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Broadridge's ProxyVote upgrade transforms shareholder voting with Pass-Through Voting

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Alex Duffy
Alex Duffy
2 Min.

Broadridge's ProxyVote upgrade transforms shareholder voting with Pass-Through Voting

Broadridge Financial Solutions has upgraded its ProxyVote platform to improve Pass-Through Voting for investors. The change allows eligible shareholders to choose their voting policy immediately after completing their proxy ballot. This update aims to make individual investor engagement simpler and more direct.

Vanguard has become the first asset manager to adopt the new capability as part of its Vanguard Investor Choice programme. The integration lets investors review and select their preferred voting policy without leaving the ProxyVote system. Wells Fargo has also launched its own internal proxy voting system, supported by Broadridge data, though no other major asset managers have confirmed similar plans by the end of 2024.

The number of funds offering Pass-Through Voting through Broadridge has grown sharply. Over 600 funds, representing more than $8 trillion in assets, now provide this option—up from just 100 funds two years ago. Broadridge expects more asset managers to follow after the upcoming proxy season.

The enhancement streamlines the process by embedding Pass-Through Voting directly into the ProxyVote experience. This simplification is designed to encourage broader shareholder participation in proxy voting. The update also benefits the wider asset management industry by making it easier to implement and expand such programmes.

Vanguard's adoption of the new system marks a key development in shareholder voting. The platform's improvements are set to increase accessibility for individual investors. With more asset managers likely to join after the proxy season, participation in Pass-Through Voting could grow significantly.