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.”

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.

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The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.The views expressed in this material are the views of Cyrus Taraporevala through the period ended March 31, 2018, and are subject to change based on market and other conditions, and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

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