How Do You Engage When The “Big 3” Have Split in Half?

Now that the last of the “Big 3” institutional investors have announced that they are splitting their stewardship team into two, it’s fair to wonder how this impacts your engagement strategy and scheduling. Engagement sure has changed this year in numerous ways – in fact, Vanguard’s latest engagement survey revealed a 44% decline in the 2^nd quarter of 2025 compared to the same period in the prior year.

First, let’s review how these stewardship teams are now split:

1. BlackRock Investment Stewardship and BlackRock Active Investment Stewardship
2. State Street Asset Stewardship Team and State Street Sustainability Stewardship Service
3. Vanguard Capital Management and Vanguard Portfolio Management (timing of the split not yet known; so separate policies not yet available)

We’ll see how engagement will need to evolve as experience with this brave new world progresses, but here are some early thoughts:

1. Understand Diverging Stewardship Priorities: The Big Three’s two sets of stewardship teams probably won’t always march in lockstep – particularly on E&S issues. This makes sense as these teams were split to better support client objectives between stewardship and investment strategy (index v. active).
2. Brace for More Relationship Building: Given that the number of people whom you’ll need to know has doubled, you will need to spend more effort to build relationships, clarify positions, and understand investor priorities. Being organized matters more than ever before while you do this.
3. Map the Global vs. Regional Policy Divide: Recognize that investor expectations may vary based on geography. U.S. and E.U. investor bases can interpret ESG – particularly diversity – quite differently. Understanding these regional leanings can help tailor engagement strategies and disclosures more effectively.
4. Track the Complexity of Voting Choice Programs: The rise of “voting choice” or “pass-through” voting means that institutional investors may no longer vote as a single bloc. Investors can select among various policy frameworks (including ISS and Glass Lewis), which may complicate vote projections.

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