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LGIM dismayed by MSCI ‘U-turn’ on unequal share-voting

UK fund manager takes umbrage at index provider's decision not to penalise companies that breach the principle of one share, one vote

Demonstrators hold signs while protesting outside the Snap office in the Venice neighborhood of Los Angeles, California, on Thursday, March 2, 2017 - the day after the firm's controversial IPO
Demonstrators hold signs while protesting outside the Snap office in the Venice neighborhood of Los Angeles, California, on Thursday, March 2, 2017 - the day after the firm's controversial IPO Photo: Getty Images

Legal & General Investment Management, one of the largest index fund managers in the world, has come out firmly against a decision by MSCI, the large index provider, not to penalise companies that breach the principle of one share, one vote.

MSCI said earlier today, October 31, that it would make no changes to its mainstream indices, following an 18-month consultation on the issue that had revealed a “divide in opinions” among fund managers.

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