2 Nov 2018
Commenting on MSCI’s decision to retain the MSCI Global Investable market indexes, Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management said: “LGIM is disappointed to see the U-turn by MSCI on the equal rights of shareholders. This means MSCI default indices will not be taking voting rights into account after a long consultation initially launched in June 2017, despite a majority of investors wanting indices to reflect the equal rights of shareholders. The result is that stocks like SNAP with zero voting rights will be allowed back into MSCI indices.
Voting rights are vital for a well-functioning market by providing critical market mechanisms to hold management to account. The failure to protect investor rights, we believe could damage the ability of the market to function in investor interests.”