Investment Stewardship: How Big Institutions Use Proxy Advisors

The article covers AQTION’s second edition of the “Stewardship in AQTION” report, which analyses the stewardship practices of 65 of the world’s largest institutional investors, collectively managing over $91 trillion in assets.

The blog explores how these investors use proxy advisors, noting that while many subscribe to ISS and Glass Lewis, more than 90% of votes are based on the investors’ own custom policies. Only 9 of the 65 investors show a “High” reliance on proxy advisor recommendations, compared to 35 with “Low” reliance.

AQTION’s research also found that fund managers are involved in the final decision-making process at 44 investors, and 2025 voting guidelines are becoming less prescriptive and more principles-based.

Other key findings from the report that were highlighted in the blog include:

• Pass-Through Voting is gaining traction among index investors like BlackRock and Vanguard, while active managers remain hesitant.
• 56 investors disclose their votes; 26 also provide vote rationales.
• 39 disclose how they assess activism.
• 15 have filed or co-filed ESG-related shareholder proposals.
• MSCI is the top ESG ratings provider, used by 54 investors, followed by Sustainalytics and ISS ESG.

The full article can be accessed using this link.