Giving investors a voice can be a key
differentiator for asset management firms worldwide
NEW
YORK, May 11, 2023 /PRNewswire/ -- The rise in
demand for pass-through voting from investors, combined with
support from regulators, is fostering the democratization of
investing in a major way, according to a new report by global
fintech leader, Broadridge Financial Solutions, Inc.
(NYSE:BR).
"Pass-through voting gives a voice to investment fund holders,"
said Demi Derem, General Manager, International Investor
Communication Solutions at Broadridge. "Institutional Investors are
increasingly active in expressing their views on ESG-related agenda
items, among other things, which they consider to be important.
Firms that fail to meet this demand can quickly find themselves
falling behind their competition."
Pass-through voting is the practice of providing investors a
voice in how asset managers vote proxies on the underlying equities
in a specific fund. Funds can allow individual and institutional
investors to vote in proportion to their holdings relative to the
other shareholders. Additionally, funds can poll retail investors
to learn their preferences. Through innovative technology,
Broadridge is working with the industry to incorporate these
capabilities.
Broadridge's latest white paper, "Pass-through Voting: Granting
a voice to the investor community in the passive investment space,"
explains how growth in the investment funds space has increased the
industry's interest in leveraging technology to provide
pass-through voting and to give a voice to institutional and
individual investors who own specific funds, but not directly the
underlying stocks. For instance, the growth of passively managed
index funds, ETFs and mutual funds, resulted in many investors
having no direct ownership interest, or ability to vote the
underlying securities in proxy matters. Pass-through voting
provides investors this voice.
The white paper was prepared in collaboration with Firebrand
Research. For more details on Pass-through Voting, what it is and
where this trend might be headed, read the full white paper
here.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with more than $5 billion in
revenues, provides the critical infrastructure that powers
investing, corporate governance and communications to enable better
financial lives. We deliver technology-driven solutions that drive
business transformation for banks, broker-dealers, asset and wealth
managers and public companies.
Broadridge's infrastructure serves as a global communications
hub enabling corporate governance by linking thousands of public
companies and mutual funds to tens of millions of individual and
institutional investors around the world. Our technology and
operations platforms underpin the daily trading of more than U.S.
$9 trillion of equities, fixed income
and other securities globally. A certified Great Place to
Work®, Broadridge is part of the S&P
500® Index, employing over 14,000 associates in 21
countries.
For more information about us and what we can do for you, please
visit www.broadridge.com.
Broadridge media contact:
Tatjana Kulkarni
+1 203-285-0766
Tatjana.Kulkarni@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.