News — The growing might of index managers

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A new report highlights how the influence of the ‘Big 3’ index fund managers continue to grow as their ownership concentration escalates and how shareholder activism surged in the first six months of 2018.

According to the report from global financial advisory and asset management firm Lazard, the ‘Big 3’ index funds companies — BlackRock, Vanguard and State Street — are now the biggest shareholders on the S&P 500, together controlling 18.4 per cent of its securities.

This stake has steadily grown from 9.1 per cent in 2002, demonstrating the rising influence of these funds on this US index.

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