Large money managers take pause after SEC guidance (Pensions&Investments)

New guidance issued by the SEC has thrown several large asset managers into confusion on how to proceed with corporate meetings and engagement with portfolio companies. The guidance requires Schedule 13D to be filed by firms that “pressure” companies over ESG matters. FrontLine’s Founder and President Amy Lynch comments that the largest managers regularly reporting beneficial ownership will need to review the guidance, be cognizant of changes needed, and then take time to reset their investment approach. At issue for these firms is whether they are now required to file the more extensive and costly Schedule 13D, as opposed to the less onerous Schedule 13G, for their required shareholder reporting requirements. Several large managers, such as BlackRock, and Vanguard, have paused meetings and engagements to assess the guidance and determine if modifications of their investment approach are needed. See Pensions&Investments (subscription required), “SEC guidance throws BlackRock, Vanguard and other asset managers into confusion over public company meetings”