It was encouraging to read Cyrus Taraporevala’s exposition of his firm’s shareholder engagement activities in “Index funds must be activists to serve investors” (July 25).

Alastair Ross Goobey argued as long ago as the 1990s that indexed fund managers had a legitimate and important role to play in enhancing the long-term value of quoted companies via active engagement. The fund management industry was slow to follow his lead but has made much progress in recent years.

What is needed now is for the pension funds and other investors that are the clients of indexed managers to recognise the value of their fund managers’ engagement activities and regard them as important criteria for selection and retention.

Robin Hindle Fisher
Sloan Fellow,
London Business School,
London NW1, UK

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