Bedfordshire pension fund adopts pass-through voting, opening door for wider LAPFF rollout
Bedfordshire Pension Fund has adopted pass-through voting—an initiative that offers other LAPFF members the potential to scale up their stewardship efforts
The £3.4bn local government pension fund, which is part of the Border to Coast pool, supports LAPFF, a member-led forum of LGPS funds that promotes collaborative stewardship.
The adoption of pass-through voting marks a significant step forward for the fund, according to councillor Doug McMurdo, member of the Bedfordshire Pension Committee and chair of LAPFF.
“When companies fail to act in the interests of long-term investors, we don’t walk away—we escalate. As asset owners, it is imperative that we are able to influence behaviour in the boardroom. Pass-through voting is another tool at our disposal to drive meaningful change where it matters most,” he said.
Bedfordshire has signed up to a pass-through voting service provided by fintech firm Tumelo in collaboration with PIRC, allowing it to cast votes on its proportional shares in pooled funds. This could enable the fund to exercise stronger oversight on stewardship issues such as executive pay and the climate transition.
As pension funds for local government workers, LGPS funds face relatively higher levels of public scrutiny than their private sector peers, with pensions committee meetings often targeted by climate or human rights protestors. LGPS funds have also become increasingly vocal in supporting climate resolutions at AGMs—a trend accelerated by asset pooling.
However, LGPS funds often hold a significant proportion of their assets in pooled funds, which makes it impossible to vote on individual shares—a challenge now being addressed through pass-through voting.
Crucially, the deal with Tumelo was designed to be scalable, as Edd Micklem, global head of strategic partnerships at Tumelo, explains:
“LAPFF members receive automatic recommendations on voting decisions. This partnership enables any LAPFF member using LGIM pooled funds to apply these recommendations automatically. It can also be expanded to other fund providers.”
Earlier this week, Irish public sector pension fund NILGOSC also adopted pass-through voting, following in the footsteps of Camden LGPS Fund, which signed up last year.
Growing support for pass-through voting comes as long-term asset owners, such as pension funds, increasingly express concerns about a lack of alignment with the stewardship practices of their managers. Asset manager support for climate resolutions has dropped significantly in recent years, fuelling a desire among long-term asset owners to take a more independent stance.
NILGOSC adopts pass-through voting
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