ESG fund groups leading on shareholder Democracy voting changes

By Trey Thoelcke Published Jul 21, 11:06AM EDT

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ESG fund groups leading on shareholder Democracy voting changes — © DenisTangneyJr / E+ via Getty Images

By David Callaway, Callaway Climate Insights

(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

LONDON (Callaway Climate Insights) — We have a long way to go before investors in mutual funds and exchange-traded funds can vote on corporate resolutions of companies they own indirectly.

But many believe it’s important we start down that road, as I discussed in a column two weeks ago. That’s when I reported on research that found shareholder democracy, coupled with even a small measure of concern for the environment, could — in theory — have a big impact on the climate policies of publicly-traded corporations.

For this column, I focused on how far apart theory and practice are on this crucial question.

Currently, the only way that most of us can vote on corporate resolutions is if we directly own the shares of that corporation. That limits our voice, since for almost all investors the vast majority of their equity assets are invested in mutual funds or ETFs that, in turn, invest in individual corporations. Historically, those funds have either not voted on corporate resolutions or largely voted with management.

A number of asset management firms are trying to change this, and here’s a quick summary of some of the major players:…

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.