(Reuters) - Index funds now control half tmsnrt.rs/2Mhmc6L the U.S. stock mutual fund market, giving the biggest funds enormous power to influence decisions and demand better returns at the companies in which they invest trillions of dollars. FILE PHOTO: Blackrock's Richard Prager rings the opening bell above the floor of the New York Stock Exchange (NYSE) in New York, U.S. May 31, 2019. REUTERS/Lucas Jackson/File Photo But the leading U.S. index fund firms, BlackRock Inc, Vanguard Group and State Street Corp, rarely use that clout. Instead, they overwhelmingly support the decisions and pay packages of executives at the companies in their portfolios, including the worst performers, according to a Reuters analysis of their shareholder-voting records. The three fund firms, for instance, supported doubling the pay of the chief executive at California utility PG&E Corp after its stock plummeted over potential liability from maintenance problems linked to California wildfires. … [Read more...] about Index funds invest trillions but rarely challenge management
Hold 10 private index fund
LONDON (Reuters) - Once shunned due to intense public scrutiny and competition from corporate buyers, private equity firms are increasingly targeting listed companies in Europe, shrugging off forecasts of a regional economic slowdown. FILE PHOTO: People walk past the London Stock Exchange Group offices in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo European buyouts have hit a 12-year record of $31.6 billion so far this year, of which almost half has been invested in listed companies, Refinitiv data shows, with industry buyers deterred by geopolitical concerns and global slowdown fears. Although these worries have led to a 67 percent fall in European mergers and acquisitions (M&A) activity in the first quarter, buyout firms - entrusted with record amounts of cash to invest - say they cannot stay on the sidelines. “Whether it’s a good or bad time, the industry’s job is to put money at work,” said Warburg Pincus … [Read more...] about Cash-flush buyout firms target Europe in take-private scramble
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | Climate-Change Funds Try to Profit From a Warming World Advertisement Supported by ` ByTim Gray April 12, 2019 For investors, the risks of climate change are already raging, with intense storms and wildfires leading to property damage and business disruption. California’s deadly fires last year resulted in losses of tens of billions of dollars — and may have contributed to the January bankruptcy of Pacific Gas and Electric, the electric utility. “The risk of catastrophic fire has increased in California, and the reason is climate change,” said Julie K. Gorte, senior vice president for sustainable investing at Pax World Funds. But the investment opportunities, beyond renewable energy, have received less attention. Nonetheless, a few mutual funds have made it their mission to … [Read more...] about Climate-Change Funds Try to Profit From a Warming World
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | The Bull Market Began 10 Years Ago. Why Aren’t More People Celebrating? Advertisement Supported by Americans are still scarred by the financial crisis, and the fruits of this decade’s record-breaking rally fell mostly to the rich. ByMatt Phillips March 9, 2019 The financial system had nearly collapsed. The deepest recession in decades was devouring over 700,000 jobs a month. Roughly $13 trillion in stock market wealth, slowly rebuilt since the dot-com bust, had again been incinerated. It was March 2009. And it was one of the best times in a generation to buy stocks. A decade later, the bull market that began back then ranks among the great rallies in stock-market history. The 305 percent surge in the S&P 500 is the index’s second-best run ever. The rise has generated more than $30 … [Read more...] about The Bull Market Began 10 Years Ago. Why Aren’t More People Celebrating?
By Cara Lombardo WSJ Sun., Feb. 10, 2019 The upper ranks of hedge funds are almost exclusively white and male. Impactive Capital LP, a new activist fund being launched by two industry veterans, will be one of the exceptions. Its co-founders and managing partners are Christian Asmar, who is Hispanic, and Lauren Taylor Wolfe. Both spent roughly a decade at activist hedge fund Blue Harbour Group LP before leaving to strike out on their own. Impactive will be shaking up an industry in which less than 5% of hedge funds are owned by women and less than 9% are owned by minorities, according to a recent report from Bella Research Group and the John S. and James L. Knight Foundation. And an analysis by The Wall Street Journal last year found that even when women are present in high-level positions at large hedge funds, they are rarely involved in investment decisions. The pair are launching Impactive with $250 million from the California State Teachers’ Retirement … [Read more...] about A Rarity On Wall Street: A Female- and Minority-Led Activist Hedge Fund