Americans for Free Markets Applauds Vanguard for Offering Market-Driven Investing Solutions that Prioritize Choice for Shareholders
Last week, Vanguard announced it is expanding voting policy options for its retail shareholders, empowering them to place prosperity over politics for the 2025 proxy season.
The policy, known as the ‘Third Party Wealth Focused Policy,’ maximizes shareholder value by providing additional investment options without the influence of social-political considerations.
In a win for free market principles, Vanguard’s announcement demonstrates how market-driven, rather than government-driven, investment practices put shareholders in the best position to choose how to maximize the value of their investments.
Following the announcement, AFFM’s Executive Director John Wittman said:
“Vanguard is clearly listening to feedback from its investors and taking action to promote free market principles that expand choices without the government dictating what investments do and don’t maximize shareholder value based on politically-motivated policies. Ultimately, this announcement serves as a shining example of market-driven solutions that put prosperity over politics which are in the best interest of shareholders, and in turn, consumers.”
What They’re Saying
Commenting on the announcement, Vanguard’s Global Head of Investment Stewardship John Galloway said the company is “taking a stand for investors,” further stating “we are committed to continuing to expand Investor Choice in a thoughtful, straightforward, and efficient way so that more and more investors can make their voices heard.”
As the Financial Times noted, the announcement comes as Vanguard and other large financial institutions are trying to best navigate a series of socially and politically-motivated laws in states driven by both the right and the left.
The article also notes that the company is also working to expand voting participation for investors who own retirement accounts, “which would vastly expand the programme’s potential reach.”
Along with Vanguard, other “big index fund rivals are also in the process of giving clients greater control over shareholder votes,” according to the Financial Times.
This move and others like it are a welcome addition to the current financial landscape, promoting the free market and putting prosperity over politics.
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