, Columnist
Why Index Funds Should Tell Us How They're Voting
Climate-conscious investors could have a powerful influence over proxy battles like Exxon’s if the SEC would require real-time transparency from passive fund managers.
Investors could wield new power through “Index Activism”
Source: Bloomberg
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On Wednesday, Exxon Mobil Corp. shareholders will vote in one of the most consequential proxy battles in modern U.S. corporate history. Dissident investors are seeking to invert the energy giant’s identity by demanding it embrace a future without oil.
Index funds have enough votes to swing the results, yet investors may not know how most fund managers voted for months – maybe not until next year when they’re required to make their annual disclosures.