Delegated Voting for Asset Management

Automating the proxy voting lifecycle eliminates manual data entry, reconciliation, and fax/email chains. This reduces administrative overhead by up to 70% and virtually eliminates costly errors in vote submission. For example, a fund managing 500+ positions can automate corporate actions across all holdings, turning a multi-week manual process into a real-time, programmatic workflow.

Every delegation instruction and vote is recorded as an immutable, timestamped transaction on-chain. This creates a permanent, verifiable audit trail that simplifies regulatory reporting (e.g., for SEC Rule 206(4)-6 or SFDR). Auditors can independently verify stewardship activities in minutes, not weeks, dramatically reducing compliance risk and audit fees.

Move beyond blanket policies. Tokenized delegation allows funds to implement sophisticated, rules-based voting strategies that automatically adjust based on ESG scores, governance risk, or performance metrics. For instance, automatically delegate votes to a sustainability expert for climate resolutions while retaining direct control on board elections. This turns governance from a compliance task into a strategic alpha-generating activity.

Traditional delegation relies on intermediaries (custodians, proxy advisors) creating operational bottlenecks and points of failure. Decentralized delegation protocols allow asset owners to delegate voting power directly to chosen experts without transferring custody of the underlying assets. This reduces reliance on single points of failure and aligns with best practices for digital asset safeguarding.

A typical implementation shows clear ROI:

• Year 1: ~$250k investment in integration and smart contract development.
• Ongoing Savings: ~$150k/year in reduced manual labor and audit preparation.
• Risk Mitigation: Priceless reduction in compliance fines and operational errors.
• Strategic Value: Enhanced reporting to LPs on stewardship, a key differentiator. The payback period is often under 24 months, with continuous efficiency gains.

Replace manual, paper-based voting with a permissioned blockchain ledger. This creates an immutable, single source of truth for all fund proposals and votes.

• Eliminates Reconciliation: No more cross-checking emails, spreadsheets, and custodian reports.
• Automated Compliance: Enforce voting eligibility rules (e.g., record date snapshots) via smart contracts.
• Real-World Example: A European private equity firm reduced vote collection time from 3 weeks to 48 hours, cutting administrative overhead by 70%.

Enable investors to securely delegate voting power to fund managers or advisors. This unlocks higher participation rates and more informed decision-making.

• Increased Turnout: Passive investors can delegate effortlessly, boosting governance participation from <30% to over 85%.
• Auditable Proxy Chain: Every delegation and subsequent vote is cryptographically recorded, providing a clear audit trail for regulators.
• Business Value: Funds can demonstrate stronger governance to prospective Limited Partners, becoming a competitive differentiator.

Leverage the transparent ledger to generate real-time dashboards for fund managers and investors.

• Instant Insight: View live vote tallies, delegation patterns, and investor sentiment.
• Automated Reporting: Generate SEC-compliant reports (e.g., N-PX) directly from the blockchain, eliminating manual compilation.
• ROI Quantified: One asset manager estimated saving $250,000 annually in compliance reporting costs and reduced operational risk.

The pilot delivers immediate efficiency gains while building a platform for future innovation.

• Faster Fund Operations: Accelerate capital calls, distributions, and investor onboarding using the same verified identity layer.
• Enhanced Trust: Transparent, tamper-proof records strengthen relationships with LPs and regulators.
• Foundation for Tokenization: The established governance framework seamlessly extends to managing tokenized assets or funds.
• Key Outcome: Transition from a cost center (governance) to a value driver (investor engagement and new products).