Vanguard Resumes Stewardship Meetings After Reviewing SEC Guidance
Vanguard has resumed its stewardship meetings with portfolio companies after reviewing new guidance from the U.S. Securities and Exchange Commission, which could require more disclosures from fund firms when pressuring companies over ESG matters. The move follows a similar step by rival BlackRock last month, as both companies take stock of materials posted by the SEC to clarify their communications. Vanguard's strategy aims to underscore the passive design of its funds and ensure that companies understand its investment focus.
- This renewed emphasis on stewardship highlights the evolving role of passive investors in corporate governance, potentially leading to increased scrutiny of ESG practices among portfolio companies.
- What are the implications for the broader financial industry if more active ownership strategies become more prevalent, and how might this impact the market's response to environmental and social concerns?