Greater Manchester Pension Fund (GMPF), the UK’s largest Local Government Pension Scheme (LGPS) with £30 billion assets under management will adopt pass-through voting.
Pass-through voting enables schemes to enforce their voting preferences on AGM resolutions within their pooled-fund investments.
GMPF, a client of LGIM, has partnered with fintech Tumelo to implement this voting capability. By utilising this technology it will be able to apply its voting policy across both segregated and LGIM pooled funds. It said this will allow it to directly influence decisions on issues such as CEO remuneration and climate change.
GMPF has a strong stewardship track record. These scheme is a member of Climate Action 100+ and has previously supported the resolution filed by NGO Follow This at Shell’s AGM, urging the oil company to align its medium-term emissions reduction targets with the Paris Climate Agreement.
A number of schemes are starting to adopt pass-through voting, including the £2 billion LGPS for Camden and the £3 billion Superannuation Arrangements of the University of London (SAUL).
These moves signify a collective effort to harmonise voting policies across equities, ensuring that investments reflect the schemes’ responsible investment values.
Historically, GMPF’s segregated mandates were voted according to its values through a policy managed by PIRC, while LGIM controlled votes for its pooled funds. The introduction of pass-through voting technology bridges this gap, providing GMPF with greater influence and consistency.
Tumelo CE Georgia Stewart, CEO says: ”Pension funds are increasingly aware of their potential to impact the companies they invest in. Customising stewardship is crucial in amplifying this influence, ensuring investments reflect their goals. The stewardship landscape is set to become more intricate and Tumelo is aiding fund managers like LGIM to adapt, enhancing their offerings with tailored voting options.”
GMPF chair Cllr Gerald Cooney adds: : “It’s great to see three of our partners, Legal & General, Tumelo, and PIRC, working together to help us implement our voting policy across more of our investments. We continue to value the stewardship activities undertaken by LGIM beyond the votes, implementing our voting policies will also give GMPF more influence and a stronger voice when we engage with portfolio companies.”
Legal & General Investment Management head of strategic clients James Sparshott, adds: “Many of our clients choose LGIM for the depth of our engagement with companies. We recognise that, on occasion, they may wish to apply their own policy on key issues and we are pleased to be able to support GMPF in doing so through our partnership with Tumelo.”