Millions of other individual investors with stakes in DIY investment giant Hargreaves Lansdown will be able to vote and participate more easily in annual general meetings.
Hargreaves Lansdown has partnered with Broadridge to bring online proxy voting to its 1.75 million customers, as investors increasingly demand a say in ESG, executive compensation and other questions.
While HL has always offered a voting service, until now clients had to manually identify relevant shareholder meetings and then phone HL to give instructions for manual processing.
According to Hargreaves Lansdown, the new online service, which follows similar initiatives from rival platforms eToro, AJ Bell and Interactive Investor, makes the process easier and faster.
The service covers 5,800 tradable stocks – all UK and European stocks on the HL platform
From November 2021, Interactive Investor allowed all of its clients to vote at general meetings as the default setting.
Tom Lee, Head of Business Proposition at HL, said: “Retail investors are increasingly interested in the power to influence companies on important issues such as board diversity, climate change and sustainability.”
“Offering new digital capability for this self-service system gives retail investors a greater say in the governance of the companies in which they hold shares and in the democratization of markets.”
Companies ask shareholders to vote on things like the board of directors, the approval of dividends and the management of the company.
The vast majority of UK shareholders would like to attend an annual general meeting, but almost half are excluded due to the widespread shareholding of registered accounts, which is the way most investment platforms operate.
The new service covers 5,800 tradable stocks, all of which are UK and European stocks on the HL platform.
However, HL still does not allow voting on US holdings. This is because stocks are usually bundled into a vehicle called Crest Depository Interest, which gives exposure to a foreign security.
US CDIs held through Hargreaves do not have voting rights.
Investors must log into their account using the HL website – the service is not available through the app.
On the website, HL clients can click on “view shareholder meetings” and provide a voting instruction via Broadridge.
Votes are placed per account, which means that if investors hold a share in Isa, Sipp and Fund and Share Account, three separate votes can be placed.
HL clients can also register to attend shareholder meetings using this service.
HL said investors are more interested in having a say on important issues such as climate change, board diversity and sustainability.
DIY investment platform eToro was the latest to launch a similar service, also in partnership with Broadridge, in November last year.
The Interactive Investor and AJ Bell allow customers to vote online and reserve their place at corporate meetings for longer.
Interactive Investor said it saw a 30% annual increase in votes processed to 210,801 in 2022.
AGM attendance, measured by the number of unique accounts requesting letters of representation, doubled. But he added that “it was from a very low base” – 720 letters were sent in 2022, compared to 359 in 2021, 263 in 2020 and 651 in 2019.
He said: “It underscores the challenge that UK PLC and the wider platform industry face if AGMs are to gain wider engagement.”
The desire to have a say on environmental, social and governance issues is also driving more investors to vote.
Demi Derem, Managing Director of Broadridge, said: “The ESG requirements of retail investors have changed.
“Having a say in how the companies they invest in has become a big deal. Subsequently, shareholder voting functionality has never been more important.
“We are proud to work with Hargreaves Lansdown to provide their investors with an enhanced proxy voting experience.
“Increasing retail investor participation is part of our ongoing mission to encourage greater shareholder engagement and improve overall standards of corporate governance.”
Compare the Best DIY Investment Platforms and Isa Stocks & Stocks
Investing online is simple, inexpensive and can be done from your computer, tablet or phone when and where it’s convenient for you.
When it comes to choosing a DIY investment platform, Isa stocks and shares, or a general investment account, the range of options can seem overwhelming.
Each provider has a slightly different offering, charging more or less for trading or holding stocks and providing access to a different range of stocks, funds and investment trusts.
When choosing the one that’s right for you, it’s important to consider the service it offers, as well as the administration and trading fees, and any other additional costs.
To help you compare investment accounts, we’ve analyzed the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
We highlight the major players in the table below, but advise you to do your own research and consider the points in our comprehensive guide linked here.
>> This is Money’s complete guide to the best investment platforms and Isas
The platforms presented below are independently selected by This is Money’s specialist journalists. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
| Administration fees | Expense | fund trading | Standard Stock, Trust, ETF Trading | Regular investment | Reinvestment of dividends | ||
|---|---|---|---|---|---|---|---|
| A.Bell | 0.25% | Max £3.50 per month for stocks, trusts, ETFs. | £1.50 | £9.95 | £1.50 | £1.50 per transaction | More details |
| Bestinvest* | 0.40% (0.2% for out-of-the-box wallets) | Account maintenance fees reduced to 0.2% for ready-to-use investments | To free | £4.95 | Free for funds | Free for income funds | More details |
| Charles Stanley live | 0.35% | No stock platform fees if a trade is made that month and an annual maximum of £240 | To free | £11.50 | n / A | n / A | More details |
| Loyalty* | 0.35% on funds | Fees from £45 up to £7,500. Max £45 per year for stocks, trusts, ETFs | To free | £10 | Free funds £1.50 stocks, ETF trusts | £1.50 | More details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for stocks, trusts and ETFs | To free | £11.95 | £1.50 | 1% (minimum £1, maximum £10) | More details |
| Interactive Investor* | £9.99 per month or £12.99 for Sipp | £5.99 per month back in trade credit | £5.99 | £5.99 | To free | €0.99 | More details |
| iWeb | £100 single | £5 | £5 | n / A | 2%, maximum £5 | More details | |
| Free exchange* | Free for standard account £3 per month for Isa | Freetrade Plus with more investments is £9.99/month including tax. Isa Fee | no funds | To free | n / A | n / A | More details |
| Avant-garde | 0.15% | Only Vanguard funds | To free | Free Vanguard ETFs only | To free | n / A | More details |
| (Source: ThisisMoney.co.uk June 2022. Administration fee shown annually, can be monthly or quarterly) | |||||||
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.
