FYI: One of the most asked questions as passive investing grows is whether index makers have become too powerful. Based on MSCI Inc.’s failed 18-month quest for benchmark reform, it seems not.
MSCI said on Tuesday that it was scrapping plans to reflect voting power in its benchmarks, following opposition from some investors. The U-turn ends more than a year of agonizing over whether the indexer for almost $14 trillion should police companies that have different classes of shares with unequal voting rights, a structure made popular by the likes of Google parent Alphabet Inc.
Regards,
Ted
https://www.fa-mag.com/news/an-18-month-chatfest-reveals-limits--and-scope--of-indexer-power-41695.html?print
