LGIM statement on MSCI decision to retain MSCI Global Investable indexes

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.”

Legal & General Investment Management:
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets of £984.8 billion1. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.