Increase in Proxy Voting Adoptions: SSGA Reports a 63% Increase
State Street Global Advisors (SSGA), the world's fourth-largest asset manager, has witnessed a significant increase in investor demand for its proxy voting choice program. In Q1 2025, SSGA experienced a **63% increase in investor adoption** of its proxy voting choice program, primarily driven by US ETF and mutual fund investors.
The program, which allows investors to direct how the shares held in their funds are voted, offers a range of up to 11 non-SSGA voting policies that cover more than 80% of the index equity assets eligible, representing approximately $1.9 trillion in assets under management. These voting policies include options from Egan-Jones, Glass Lewis, and a Bowyer Research policy designed for SSGA's US government entity clients.
The surge in investor demand for proxy voting choice aligns with broader strategic efforts at State Street to enhance digital platforms and data-driven solutions aimed at institutional investors. SSGA was the first asset manager to extend this voting choice option to European funds, underlining its leadership in this innovation.
The robust growth in adoption of SSGA’s proxy voting policies reflects investor appetite for greater influence and customization in proxy voting decisions. This trend may further enhance client engagement and is positioned as part of long-term value creation for investors.
However, SSGA's approach to stewardship has faced criticism in recent years. The company's support for social and environmental resolutions has declined sharply, from 30% in 2021 to 9% in 2024. Some large institutional investors have expressed concern about SSGA's overall approach to stewardship over the past year. Additionally, State Street, SSGA's parent company, faces increasing pressure in the US to distance itself from climate alliances.
Despite these challenges, State Street Corporation, SSGA’s parent company, remains financially robust. The company reported a **39% year-over-year surge in net income in Q1 2025**, reflecting successful cost management and growing fee income. This robust performance supports their continued investment in innovative offerings like the proxy voting choice program.
Notably, other institutional investors have also been active in their proxy voting decisions. In March 2023, Danish pension fund Akademiker terminated a DKK3 billion mandate with State Street, while UK master trust The People's Pension announced in February 2023 a significant scaling back of its investments with State Street, effectively divesting £28 billion.
In conclusion, the rapid growth in adoption of SSGA’s proxy voting policies represents both a response to investor demand for greater control and customization of voting rights and a strategic move aligned with State Street’s broader push into technology-driven asset management solutions. As the industry continues to evolve, it will be interesting to see how SSGA and other asset managers adapt to these changing expectations and market dynamics.
Businesses in the financial sector, such as State Street Global Advisors (SSGA), are increasingly focusing on technology-driven solutions to meet evolving investor demands. This is exemplified by SSGA's significant 63% increase in Q1 2025 of investors adopting their proxy voting choice program, a move that underscores their commitment to offering customized investment options. Furthermore, SSGA's robust financial performance, with a 39% year-over-year surge in net income in Q1 2025, provides a strong foundation for continued investment in innovative offerings like their proxy voting choice program, which facilitates investing, business growth, and technology advancement.
