Sustainable Finance Newsletter - Complications from more fund democracy
By Ross Kerber
Nov 27 (Reuters) -Everyone likes the idea of letting fund investors direct their votes at corporate annual meetings, but the changes also raise practical concerns for shareholder communications.
My column this week explores this area. I've also included links to stories about slowing flows to climate funds and Walmart's move away from some DEI efforts.
You can follow me on LinkedIn and lately I have been trying out social media platform Bluesky just like all your friends. Or you can email me at ross.kerber@thomsonreuters.com
Corporate execs see complications from more fund democracy
Programs to let investors influence the votes cast by their mutual funds at corporate annual meetings could complicate the contests, company leaders worry, hardly the goal of reformers.
BlackRock, Vanguard and State Street have each rolled out capabilities for investors to shape the funds' votes on matters like the election of directors or advisory votes on executive pay.
The programs offer an intriguing path for shareholders to shape executives' decisions. But the CEO of a trade group for corporate secretaries says there are communications challenges that need to be worked out.
You can read more in my column this week by clicking here.
Company News
Tesla's TSLA.O electric vehicles likely would not qualify for California's new state tax credits under a proposal in the works if President-elect Donald Trump scraps the federal tax credit for EV purchases, Governor Gavin Newsom's office said.
Wells Fargo WFC.N is in the last stages of a process to pass regulatory tests to lift a $1.95 trillion asset cap next year after fixing problems from its fake accounts scandal, according to three sources familiar with the situation.
Never mind "drill, baby, drill." U.S. oil and gas producers are unlikely to radically increase production under President-elect Donald Trump as companies remain focused on capital discipline, a senior executive at Exxon Mobil XOM.N said.
On my radar
Investors are on track to withdraw more money from global climate funds than they deposit this year for the first time, Morningstar Sustainalytics said, presenting an obstacle to energy-transition efforts.
As a money manager, Scott Bessent's years of inconsistent performance contributed to a nearly 90% decline in his hedge fund's assets. But Bessent has scored on perhaps his biggest bet yet: President-elect Donald Trump, who named him Treasury Secretary on Friday. My colleagues wrote up the flows and returns as part of their review of Bessent's business.
Edinburgh-based Stewart Investors identified six companies as "leading the way to a more sustainable housing sector" including Advanced Drainage Systems,WMS.N Simpson Manufacturing SSD.N and TopBuild.BLD.N
Reporting by Ross Kerber in Boston; Editing by David Gregorio
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