State Street Global Advisors Extends Proxy Voting Choice to More Investors

Rhea-AI Summary

State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), has launched a program allowing investors in certain institutional funds in the US and UK to direct how shares held in their funds are voted. The initiative aims to enhance participation in proxy voting, with eligible investors managing over 40% of index equity assets able to make their voting choices by the 2023 proxy season. The program will be supported by Institutional Shareholder Services (ISS) and aligns with the company's long-term value delivery mission.

Positive

• Launch of a program enabling investors to direct voting on shares in US and UK funds.
• Enhances investor participation in proxy voting for over 40% of index equity assets managed by State Street.
• Program aligns with the company's mission to deliver long-term value for clients.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced it will offer more investors the power to direct how shares held in the funds they own are voted.

The new program will offer eligible investors in certain institutional funds in the US and the UK a range of voting policies that will be applied to the voting of shares held in those funds. Voting policies offered as part of the new program will be made available to investors through Institutional Shareholder Services (ISS), a recognized independent proxy voting provider.

State Street Global Advisors’ clients in separately managed accounts already have the ability to either vote their own shares directly or delegate proxy voting of their shares to the firm’s asset stewardship team.

With the addition of this new program, investors in more than 40% of the index equity assets managed by State Street Global Advisors will have the ability -- by the start of the 2023 proxy season -- to make choices regarding how shares held in the funds and separately managed accounts they own are voted. Over time, the firm intends to expand investor directed voting choice to as many of its index equity assets under management as possible.

“The new voting choice program is a recognition of how important participation in proxy voting is to our clients,” said Lochiel Crafter, executive vice president and head of the Global Institutional Group of State Street Global Advisors. “Giving even more investors the chance to choose how to vote shares held in funds they are invested in will remain a priority.”

More details and information on the proxy voting policies that will be offered to investors as part of the new program can be found at the company website. Similar to separately managed accounts, shareholders of institutional funds that are eligible for the new program can also still choose to delegate their votes to the State Street Global Advisors Asset Stewardship team.

For funds where the ability to select a proxy voting policy to apply to the voting of shares held by the funds is not yet available, the State Street Global Advisors Asset Stewardship team will continue to vote proxies for those funds and investors. Please visit the firm’s website to learn more about our approach to asset stewardship.

“Our focus is to deliver long-term value for our clients,” said Lori Heinel, executive vice president and global chief investment officer at State Street Global Advisors. “Whether our investors delegate voting responsibility to us or choose a different voting option, we remain committed to that mission.”

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $3.26 trillion† under our care.

*Pensions & Investments Research Center, as of 12/31/21.

†This figure is presented as of September 30, 2022 and includes approximately $55.12 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, , LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

State Street Global Advisors Worldwide Entities

The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator or applicable Swiss Regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

Investing involves risk including the risk of loss of principal.

All information is from State Street Global Advisors unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The above expectations are based on certain assumptions and analysis and are subject to change based on market and other conditions. This contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

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© 2022 State Street Corporation - All Rights Reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221212005858/en/

Randall Jensen (North America)

+1 (929) 244-3768

rjensen@statestreet.com

Luke O‘Mahony (EMEA)

+44 (0) 7759 067 914

lomahony@statestreet.com

Kate Cheung (APAC)

+85 235561103

Kate.cheung@statestreet.com

Source: State Street Corporation

FAQ

What new voting program did State Street Global Advisors announce for STT investors?

State Street Global Advisors announced a new voting program that allows eligible investors in certain institutional funds to direct how shares held in those funds are voted.

When will the new voting program for STT investors take effect?

The new voting program will be available to eligible investors by the start of the 2023 proxy season.

How much of State Street's index equity assets will be affected by the new voting program?

The new program will apply to investors managing over 40% of State Street's index equity assets.

Who will facilitate the new voting policies for State Street's institutional funds?

The new voting policies will be facilitated by Institutional Shareholder Services (ISS), an independent proxy voting provider.