The Passive May Be Active After All
Tuesday, December 8, 2020 | 2:40PM
- 3:30PM | Room:
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Concurrent Session
BlackRock, Vanguard, State Street; these are some of the most prominent index fund managers out there. In fact, they are likely a part of your top 10 shareholder list. And while index funds are often considered passive investors, they have become increasingly active in terms of corporate governance. This type of passive/active index investor may be passive in their daily investments but is active and taking a more prominent role in influencing proxy votes, company ESG policies, executive compensation and so much more.
With this ‘the index fund takeover’, are there any hidden dangers IROs should take note of as we prepare for the future? And how should we best navigate our shareholders in light of this change? Join us as we hear from index fund managers, scholarly experts and financial journalists focused on the shift in shareholder composition as they discuss how IROs can maintain a productive relationship with their passive/active shareholders.
Learning Objectives:
- Discover what exactly it means to be a passive investor in today’s standards
- Understand that even with the shift to passive, IROs must remain active and proactively reach out to all of their top shareholders on an ongoing basis not just during proxy season
- Learn how to best interact with index funds and keep them abreast of company developments, including deploying tactics such as providing access to your Board of Directors and enhancing company proxy disclosure practices to include key topics like ESG and long-term strategic planning initiatives