Insight
Index Funds Must Be Activists to Serve Investors
- In a Financial Times op ed CEO Cyrus Taraporevala stated that “We seek long-term value for millions of ordinary investors in a world that has become increasingly obsessed with short-term results.”
- Taraporevala also wrote that “We carefully select the issues we focus on with companies, based on rigorous research into their impact on investment performance. For example, numerous studies show that diversity at the board level leads to better decision making, fewer reputational crises and ultimately better returns.”
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CEO Cyrus Taraporevala’s Financial Times op-ed explains how our stewardship engagement is about creating long-term value, not imposing values.
“We seek long-term value for millions of ordinary investors in a world that has become increasingly obsessed with short-term results. That goal, not some political agenda, is why we have developed a rigorous, research-based shareholder engagement programme. We raise all kinds of issues with boards that might materially impact their company’s ability to generate sustainable returns over the long haul.”
Read the full article here.