BlackRock, Vanguard scale back company talks as new guidance bites
1. Top asset managers reduced meetings with companies due to new guidance. 2. Challenges arise in addressing climate change and diversity topics.
FAQ
Why Bearish?
The reduction in meetings may hinder BLK's ability to influence key corporate issues. Historical trends show that asset managers’ engagement correlates with corporate governance effectiveness.
How important is it?
The shift in engagement strategies could lead to broader industry consequences, affecting asset managers like BLK. While not directly related, these changes reflect wider trends in asset management.
Why Short Term?
The effects of reduced engagement are likely to manifest quickly as investor reactions unfold. Similar situations in the past have led to immediate market responses against firms with limited dialogue.