State Street (NYSE:STT) Global Advisors (SSGA) has launched a new voting policy for shareholders of its US equity index ETFs and mutual funds, enabling them to vote in line with the recommendations of the boards of the companies they are invested in. CEO Yie-Hsin Hung announced the 'Vote with Company Board Recommendation Policy' today, which is now available for more than 80% of eligible index equity assets.
The policy, initially announced in May 2023, allows shareholders to align their proxy voting with the guidance of company boards, reflecting a trust in the decision-making of corporate governance. For investors who prefer not to participate directly, they have the option to delegate their voting power to SSGA's Asset Stewardship team.
This initiative is part of the firm's ongoing efforts to enhance shareholder engagement and expression, as noted by Lori Heinel, Global Chief Investment Officer at SSGA. The policy includes SPDR ETFs and aims to cater to the needs of all investors, including those in institutional equity index funds.
InvestingPro Insights
State Street Global Advisors' new policy may be of particular interest to investors who value stable dividend payments and low volatility in their investments. According to InvestingPro, SPY (NYSE:SPY) has maintained dividend payments for 31 consecutive years and generally trades with low price volatility, which aligns with the risk-aware approach SSGA promotes. Moreover, SPY has raised its dividend for 13 consecutive years, demonstrating a commitment to returning value to shareholders.
InvestingPro Data indicates that SPY has a market capitalization of $427.63 billion and a dividend yield of 1.39% as of the last dividend date in September 2023. Despite a challenging market, SPY's revenue growth over the last twelve months as of Q2 2023 has been 13.54%, showcasing resilience in its financial performance.
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