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Empowering investors through BlackRock Voting Choice

At BlackRock, we are committed to a future where every investor can have an easy and efficient option to participate in the proxy voting process.

Today, investors can choose from thousands of low-cost, high-quality investment funds across asset classes and markets. BlackRock believes that greater choice should extend to proxy voting and is committed to a future where every investor can participate in the proxy voting process if they so choose.

We launched BlackRock Voting Choice in 2022 to make participation in the proxy voting process easier and more accessible for eligible clients.

BlackRock Voting Choice, an industry first and a proprietary offering, currently enables eligible clients to participate in the proxy voting process where legally and operationally viable.

BlackRock Voting Choice Q2 2024 AUM

Source: BlackRock. Client funds participating in BlackRock Voting Choice are as of June 28, 2024. Assets include index equity assets held in multi-asset fund of funds strategies.

Note: Newly committed Voting Choice AUM includes pooled fund clients that have elected BlackRock Voting Choice options 1 or 3, separate account clients that have elected BlackRock Voting Choice options 2 or 3, and shareholders in one of BlackRock’s largest ETFs that have elected to participate. Certain institutional pooled funds that implement Systematic Active Equity (SAE) strategies are also eligible for BlackRock Voting Choice but are not displayed in the chart. Eligible SAE institutional pooled funds and separate accounts amount to $140bn in eligible Voting Choice assets. All currency shown in USD.

Eligible clients can choose one of four options:1

1. Clients choose and implement their preferred voting policy

Clients in certain institutional pooled vehicles have the ability to apply their preferred voting policy to shares in the pooled fund reflecting the client’s proportional ownership of that fund. Clients either develop their own processes and policies to be implemented by an in-house team or contract directly with a third-party proxy advisor to develop and implement a custom policy2. The preferred voting policy, whether designed in-house by the client or a third-party, can be applied in a consistent way across a broader share of their overall portfolio allocation, using the client’s preferred proxy voting service provider and allowing the client to exercise a high degree of control over the decision-making process and the voting implementation.

2. Clients can direct votes

Separately managed account (SMA) clients have multiple options to direct votes. SMA clients can (i) authorize BlackRock to vote in accordance with BlackRock Investment Stewardship’s Benchmark voting policy, (ii) select a third-party voting policy offered through Voting Choice, (iii) utilize their custom voting policy, (iv) implement a voting policy based on their investment objects with the support of BlackRock Investment Stewardship3, and/or (v) make specific voting decisions on the topics or at the companies that matter most to them after a voting policy is applied4.

3. Clients choose from a slate of third-party policies

Clients in eligible institutional pooled vehicles and SMAs have the ability to select from a set of voting policies5 from third-party proxy advisers the policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast votes based on the client’s selected voting policy.

4. Clients rely on BlackRock’s informed judgment for all voting decisions

Clients have the choice to rely on BlackRock Investment Stewardship for all of their voting decisions. Electing to rely on BlackRock to exercise voting authority is itself a choice and a deliberate decision by the client to entrust BlackRock Investment Stewardship to vote in the client’s economic interests.

1Institutional SMA clients have the opportunity to vote eligible proxies for the companies in which they are invested. Investors in eligible institutional pooled vehicles will have the opportunity to direct voting on eligible proxies in eligible markets for companies held by the pooled vehicle. BlackRock will determine eligibility criteria under this program based upon, among other things, local market regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations, including the decision to lend securities. Voting policies shall be consistent with applicable fiduciary standards.
2Client policies must seek voting outcomes consistent with the economic interests of the relevant pooled fund.
3Institutional clients in eligible SMAs will be supported in their design and implementation of their bespoke voting guidelines. BlackRock will engage with eligible institutional SMA clients to facilitate the design of proxy voting guidelines that align with their investment objectives which can then be implemented on BlackRock’s proxy voting infrastructure. There are recurring annual fees charged by proxy advisor vendors to implement custom voting guidelines.
4The ability to vote directly on the topics or at the companies that matter most is limited to SMAs who have selected the BlackRock Benchmark Voting Policy or policies offered through Institutional Shareholder Services. This ability is not available to clients in institutional pooled funds.
5Certain voting policies offered through Voting Choice will not be eligible for use for our Irish and UK funds with ESG characteristics, including index funds that track indices with ESG characteristics.

$2.8
$2.8tn of our index equity assets are eligible for BlackRock Voting Choice
$646
$646bn of our eligible AUM ($2.8tn) committed to Voting Choice
91%
Over 91% of our institutional index equity assets are eligible for Voting Choice
60
Over 60mn participate in pension plans that are eligible for Voting Choice
650
Over 650 global funds are eligible for Voting Choice

Source: BlackRock. Client funds participating in BlackRock Voting Choice are as of June 28, 2024. Assets include index equity assets held in multi-asset fund of funds strategies.

Note: Newly committed Voting Choice AUM includes pooled fund clients that have elected BlackRock Voting Choice options 1 or 3, separate account clients that have elected BlackRock Voting Choice options 2 or 3, and shareholders in one of BlackRock’s largest ETFs that have elected to participate. All currency shown in USD.

BlackRock Voting Choice FAQs BlackRock Voting Choice Policies U.S. Pilot Program
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BlackRock Voting Choice Policies

We offer a wide range of Voting Choice policies through Institutional Shareholder Services (ISS), Glass Lewis and Egan-Jones.

ISS Policies

  • ISS Benchmark Policy
  • Sustainability Policy
  • Socially Responsible Investment (SRI) Policy
  • Catholic Faith-Based Policy
  • Public Pension Fund Policy
  • Taft-Hartley Policy
  • Global Board-Aligned Policy

Glass Lewis Policies

  • Glass Lewis Benchmark Policy
  • Climate Policy
  • ESG Policy
  • Catholic Policy
  • Public Pension Policy
  • Taft-Hartley Policy
  • Corporate Governance-Focused Policy

Egan-Jones Policies

  • Egan-Jones Wealth-Focused Policy
  • Egan-Jones Standard Policy

Read our full Voting Choice – Voting Policy Comparison

BlackRock Voting Choice FAQs

  • BlackRock believes that greater choice should extend to shareholder proxy voting and is committed to a future where every investor can participate in the proxy voting process. BlackRock Voting Choice [sometimes known as pass-through voting] provides eligible clients with more opportunities to participate in the proxy voting process where legally and operationally viable.

  • Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S., UK, Ireland, and Canada that utilize equity index investment strategies, as well as eligible clients in certain institutional pooled funds in the U.S., UK, and Canada that use systematic active equity (SAE) strategies. Currently, this includes over 650 pooled investment funds, including equity index funds and SAE funds. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for BlackRock Voting Choice regardless of their investment strategies.

  • To protect clients’ confidentiality, BlackRock does not disclose names of clients publicly without their consent, including Voting Choice clients.

U.S. Pilot Program

As part of our commitment to a future where every investor can participate in the shareholder voting process, BlackRock has expanded the Voting Choice program to eligible investors through a U.S Pilot Program. The pilot will provide eligible shareholder accounts with more opportunities to participate in the proxy voting process. Two years from the launch of BlackRock Voting Choice for institutional clients, the expansion of the program to individual investors increases eligible Voting Choice assets to $2.6 trillion3, half of BlackRock’s index equity assets under management.

Frequently asked questions

  • BlackRock believes that greater choice should extend to shareholder proxy voting and is committed to a future where every investor can participate in the proxy voting process. BlackRock Voting Choice is a proprietary offering that provides eligible clients with more opportunities to participate in the proxy voting process where legally and operationally viable [sometimes known as pass-through voting].

    BlackRock launched Voting Choice in 2022, making proxy voting easier and more accessible for eligible institutional clients, extending eligibility to more clients in more funds and providing a range of voting policies available for clients. As of December 29, 2023, institutional index equity clients representing $598 billion4 in index AUM were participating in BlackRock Voting Choice. Read more about BlackRock Voting Choice and the options available for institutional clients here.

  • BlackRock is expanding Voting Choice by offering proxy voting to eligible shareholders in U.S. Pilot Fund with the launch of our U.S. Pilot Program. Eligible investors will have the opportunity to select one of six third-party proxy voting policies, as well as the option to continue to have their proportionate shares voted according to the BlackRock Investment Stewardship Benchmark voting policy. Once a voting policy is selected, it will be applied to the annual general shareholder meetings of companies held in the U.S. Pilot Fund (subject to certain exclusions), based on investors’ proportional ownership of the U.S. Pilot Fund. The pilot launched on February 14, 2024 through December 31, 2024. BlackRock will use this pilot to evaluate investor interest, the necessary proxy voting infrastructure and overall user experience to evaluate further expansion of the program.

  • A proxy voting policy is a document that provides principles-based guidance on how a vote may be cast on certain items of business on the agenda at a company shareholder meeting. Voting policies are not exhaustive and are applied on a case-by-case basis. As such, they do not indicate how votes will be cast in every instance.

  • BlackRock offers eligible U.S. Pilot Fund investors the ability to select one of six third-party policies as well as the option to continue to have their shares voted according to the BlackRock Investment Stewardship Benchmark Policy, offering eligible investors choice in voting policies that may result in different voting outcomes.

    BlackRock Investment Stewardship Benchmark Policy:

    Available ISS Policies:

    Available Glass Lewis Policies:

  • Any eligible U.S. Pilot Fund investor that receives fund proxies through email or mail will receive the proxy voting policy survey. If an advisor receives fund proxies through email or mail on behalf of their client, the advisor will receive the survey and will be able to make the voting policy selection on behalf of their client. End investors of advisors who have voting discretion, as per the advisor agreement (i.e., most non-discretionary accounts) will also receive the survey.

    Investors that receive U.S. Pilot Fund proxy information through a proxy vendor such as Institutional Shareholder Services (ISS), Glass Lewis, or Broadridge Proxy Edge will not receive the survey and will not be eligible to participate in the U.S. Pilot Program. This includes most institutional clients, and certain advisors; or investors who do not have voting discretion (i.e., most advised discretionary accounts).

3Source: BlackRock. As of December 29, 2023. Assets include index equity assets held in multi-asset fund of funds strategies.
4Source: BlackRock Client funds participating in BlackRock Voting Choice are as of December 29, 2023. Assets include index equity assets held in multi-asset fund of funds strategies.

Read our U.S. Pilot Program FAQs

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BlackRock has seen growing interest from clients who wish to exercise their proxy voting rights as long-term owners of publicly traded companies. In response, BlackRock pioneered an industry movement by launching Voting Choice, making proxy voting easier and more accessible for eligible clients. For the many clients who choose to entrust BlackRock with voting on their behalf, we remain steadfast in our focus on their long-term financial interests, consistent with our fiduciary duty as an asset manager.

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Joud Abdel Majeid Global Head of BlackRock Investment Stewardship

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