LGT Wealth Management, which oversees £30.4bn ($38.4bn) in assets, has become the first European wealth manager to adopt pass-through voting technology, empowering its clients to directly influence decisions within their investments.
The move has assisted LGT Wealth Management’s clients to voice opinions on key corporate resolutions across a range of passive pooled-fund investments.
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This shift strengthens the firm’s stewardship strategy and sustainability focus, expanding voting influence across client portfolios to align investments more closely with individual values.
In addition, the initiative is facilitated through ProxySphere technology by fintech firm Tumelo, in collaboration with Legal & General Investment Management (LGIM) and State Street Global Advisors.
Traditionally, asset managers made centralised voting decisions, but pass-through voting allows individual investors a direct say. This change reflects a broader regulatory push for wealth managers to take greater responsibility in stewardship practices.
Moreover, this innovative step underscores LGT’s dedication to sustainable investing and amplifying the investor voice.
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By GlobalDataSiobhan Archer, global stewardship lead at LGT Wealth Management, said: “This is an important move for us. By adopting pass-through voting, we can better uphold our commitment to enhancing and preserving assets for our clients while creating long-term value for the economy, environment and society. We believe pass-through voting is rapidly becoming a key mechanism in investors’ stewardship toolkits and an effective way to complement our engagement efforts with managers.”
Edd Micklem, VP of investor partnerships at Tumelo, shared: “We’ve already seen UK pension funds adopt pass-through voting via our partnership with LGIM. It’s exciting to see asset managers also collaborating with their wealth clients in this way. Wealth managers are paying much closer attention to the degree of voting alignment within their portfolios, particularly on environmental and social issues, so we are thrilled to enable them to take action.”
Mark Johnson, head of institutional clients at Asset Management, Legal & General added: “This is a progressive and an exciting partnership, many investors, especially those focused on sustainability issues, want their investments to align with their values. Pass-through voting allows greater freedom to vote in accordance with their own priorities and preferences.”
