In today’s briefing:
- Passive Funds, Silent Shareholders, Are a Barrier to Corporate Governance
Passive Funds, Silent Shareholders, Are a Barrier to Corporate Governance
- While policy holdings have declined, passive funds have appeared among the top shareholders of many companies. The Bank of Japan’s ETF purchases have accelerated this growth.
- The question is whether the passive funds that have appeared as major shareholders in each company are exercising their voting rights on reasonably reasonable basis that fulfills their fiduciary duties.
- In reality, engagement is limited to a few companies due to the large number of portfolio companies and low management fees.This implies that the same is true for proxy voting.
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