BlackRock says it has recommenced stewardship meetings after it and Vanguard paused them this week over concerns about new US Securities and Exchange Commission’s investor activism guidance.
The pause had raised questions over how tightening restrictions on ESG and stewardship activity in the US could mean for funds with ESG overlays.
A report in the Financial Times said the asset managers had put a temporary pause on meetings with companies in shareholder battles because of fears of violating new SEC rules that appear to limit the stewardship powers of big index trackers.
The news comes as research from Corporate Adviser Intelligence finds that half of UK DC providers would consider divesting from an asset manager if it failed to meet sustainability targets.
BlackRock is the most widely used asset manager in the UK DC space, used by 11 providers in their defaults, either exclusively or as a key component. Vanguard is used by one provider.
Aegon Master Trust, Aon, Aviva, Fidelity, Hargreaves, Mercer, Nest, Now: Pensions, Scottish Widows, Standard Life and TPT Retirement Solutions all use BlackRock and Standard Life use Vanguard.
BlackRock has maintained a significant level of stewardship activity over the years. It has been the second most active asset manager operating in the UK DC pensions sector, voting at 18,000 company meetings in the year to 20.6.24, voting on 169,000 individual resolutions, according to the Corporate Adviser Intelligence DC Pensions Responsible Investment Report 2025 which will be published shortly. Only State Street Global Advisors voted at more meetings and on more resolutions.
A BlackRock spokesperson said: “As part of our responsibility as a fiduciary, BlackRock engages with companies to make more informed voting decisions on behalf of clients who have authorized us to do so. BlackRock does not use engagement as a way to control publicly traded companies.
“Last week, after the SEC issued new guidance, BlackRock temporarily paused stewardship engagements with companies as we assessed the new requirements. This week, after completing our assessment, we resumed our stewardship engagements on behalf of clients.
“We are complying with the new requirements including by highlighting our role as a “passive” investor at the start of each engagement. We operate in one of the most highly regulated industries globally and are committed to following the law in every respect.”
ASSET MANAGER VOTING RECORDS
| Company meetings voted at – 12 months to: | Number of individual resolutions voted on – 12 months to: | % against the board – 12 months to: | ||||
| 30.6.2024 | 30.6.2023 | 30.6.2024 | 30.6.2023 | 30.6.2024 | 30.6.2023 | |
| Abrdn | 7,257 | 4,763 | 73,891 | 74,522 | 13% | 13% |
| Aegon Asset Management | 3,853 (calendar year 2023) | 3,853 | 33,866 (calendar year 2023) | 44,656 | 10.1% | 10% |
| AllianceBernstein | N/A | 10,613 | N/A | 110,940 | N/A | 12% |
| Aviva Investors | 6,484 | 6,510 | 68,168 | 69,740 | 22.5% | 25.5% |
| BlackRock | 18,000 | 18,000 | 169,000 | 171,000 | 12% | 12% |
| Columbia Threadneedle | 7,046 | 9,133 | 76,173 | 103,040 | 16% | 21.4% |
| Fidelity International | 3,635 | 3,179 | 38,929 | 39,812 | 9% | 9% |
| JP Morgan Asset Management | N/A | 8,663 | N/A | 88,963 | N/A | 9% |
| Legal & General | 11,173 (to 31.12.24) | 12,908 | 148,348 (to 31.12.24) | 133,996 | 24.8% | 23% |
| Schroders | 6,908 | 7,280 | 73,562 | 74,948 | 12.9% | 13% |
| State Street Global Advisors | 23,774 | 22,655 | 209,531 | 204,022 | 25.5% | 16.5% |
Source: Corporate Adviser Intelligence DC Pensions Responsible Investment Report 2025