JPMorgan Chase added to what has already been a hard year for proxy advisers by stating that it would no longer use the services of firms such as Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co., which together hold a virtual duopoly in the business of advising fund managers how to vote at shareholder meetings.
In an internal memo, JPMorgan stated that its asset management division will instead use an internal artificial intelligence-powered program to help determine how to vote the shares it owns. The program, called “Proxy IQ,” will analyze corporate voting issues across more than 3,000 annual shareholder meetings.
