Impact investor CIRCA5000 has adopted fintech Tumelo's "pioneering" voting technology for its new range of impact focused ETFs, claiming to become the first UK ETFs to offer this facility.
It means every institutional investor in the CIRCA5000 fund range can choose how they want to vote at corporate annual meetings - via Tumelo's platform - by selecting a voting policy, voting ad hoc, or delegating to their fund manager. The Tumelo platform also allows investors to access research from proxy adviser Glass Lewis.
Following roll-out to institutional investors, CIRCA5000 is also considering offering the same service to retail investors.
Tumelo said it is the only platform to offer pass-through voting and expression of wish to all fund managers' beneficial owners, including both institutional and retail investors.
Pass-through voting is the mechanism by which investors in a pooled fund can vote the shares in proportion to the assets they have invested - giving them a say in how the companies they invest in are run.
The new range of CIRCA5000 ETFs - which launched today (7 June) - offers a market-leading investment opportunity for investors looking to support positive change in five key areas: Green Energy & Technology, Sustainable Food & Biodiversity, Clean Water & Waste, Social & Economic Empowerment and Health & Wellbeing.
Each fund has its own impact objective. For example, the Green Energy & Technology ETF aims to eliminate the 51 billion tonnes of CO2e emitted into the atmosphere each year.
Georgia Stewart, CEO of Tumelo, said: "We are thrilled to be part of CIRCA5000's story and to help it reach investors in new and compelling ways.
"For many investors, the ability to have their say on key votes at the companies they invest in is a game changer. In fact, pass-through voting will become essential if investors want to feel like responsible owners. For fund managers, we believe it eradicates at least one reason why some shareholders divest from funds and look elsewhere.
"Importantly, fund managers using our technology can also override any pass-through votes on decisions that affect their ability to meet their fiduciary duty. If they only want to enable expression of wish, then they can then use our platform to communicate back to investors why they chose to vote in a particular way.
Tom McGillycuddy, co-founder at CIRCA5000, said: "Today's listing of the CIRCA5000 range of ETFs presents an opportunity for investors to make a positive impact through investing in the companies that are solving the world's biggest challenges - and have a say in how those companies are run. The landmark partnership with Tumelo allows investors in our ETFs to choose how to cast their vote. This collaboration with experienced partners Tumelo and Glass Lewis supports our focus on effective stewardship."
Dan Concannon, chief commercial officer at Glass Lewis, said: "We are proud to partner with Tumelo and support CIRCA5000 by offering their clients Glass Lewis's sophisticated proxy voting policies and vote recommendations. The pass-through voting solution is an important step in proxy voting democratization, allowing all investor votes to be counted."
