LGT Wealth Management Adopts Pass-Through Voting

LGT Wealth Management has become the first wealth manager in Europe to implement pass-through voting, allowing clients to directly influence proxy voting decisions within their passive pooled-fund investments. This initiative, facilitated through Tumelo's ProxySphere technology in collaboration with Legal & General and State Street Global Advisors, aims to enhance the alignment of investments with individual values, particularly regarding sustainability. Traditionally, proxy voting has been centralized, but this new approach gives investors a voice in corporate governance matters, reflecting regulatory pressures for wealth managers to adopt more responsible stewardship practices. Siobhan Archer, global stewardship lead at LGT, emphasized that this move supports the firm’s commitment to creating long-term value for clients and society. The adoption of pass-through voting aligns with trends seen in the US, where firms like BlackRock have already implemented similar systems.