 "Illustration: Binay Sinha")
A few weeks ago, F William McNabb III, chairman and chief executive officer of The Vanguard Group, an investment manager with US$4.4 trillion under management, issued an open letter to the directors of public companies worldwide (https://about.vanguard.com/-investment-stewardship/governance-letter-to-companies.pdf). This was accompanied by the Investment Stewardship Annual Report (https://about.vanguard.com/investment-stewardship/annual-report.pdf). Vanguard is credited with the creation of and focus on index funds and is the ultimate long-term investor — the fund will hold shares if a company is an index stock. Given this, governance matters hugely.
In the letter to boards, Vanguard has reiterated its commitment to investing for the long term
In the letter to boards, Vanguard has reiterated its commitment to investing for the long term
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