State Street Global Advisors targets underperforming companies - my dish olive garden darden restaurants

(Reuters)-
Index fund manager State Street Global consultancy has become increasingly active in its investment strategy, targeting companies that have not performed well in more than five years. The Boston-
Manage the $2 head office company.
In an interview with Reuters, Rakhi Kumar, head of corporate governance at SSgA, said that in the past few months, 4 trillion of assets have begun to discuss with executives of poorly performing companies.
According to the FactSet research system, SSgA is the largest shareholder of 494 of S & P's 500 companies.
With the recent increase in hedge fund investor activity, SSgA wants to ensure that the companies it owns understand the issues it has long been focusing on
The term of shareholders, Kumar said.
"We recognize that there is a reason for the success of activists, but if you take us seriously as well, it is time for us to say that we are here," Kumar said . ".
Unlike active fund managers who are able to sell poorly performing company shares, index funds like SSgA must keep all stocks on the benchmark they track.
In addition, customers, especially customers in the United StatesS.
Kumar says pension plans are increasingly demanding that SSgA play a more active role in companies that are not performing well.
"Expectations are changing," she said . "
"It doesn't make sense for me to outsource my management to another investor with a different investment philosophy.
"State Street has developed internal screens to determine which companies to work with, but Kumar declined to discuss the screens and also declined to disclose which companies SSgA has been in contact with for poor performance.
She said she would not become a radical investor.
"We will go in and ask questions, but we will not answer questions or try to manage the company," she said . ".
"We have many activities. year.
"While SSgA has increased its focus on corporate governance over the past few years, it has supported management in most proxy votes over the past few years.
In 2014, the company voted against management with only 11% of the votes, compared with 10.
According to the company, 6% in 2013.
SSgA supports some high
Activity Profile for activists
On last October, activist Starboard Value LP won a stand-off with Denton restaurant to replace the entire board of directors of the parent company of Olive Garden --
Support The SSgA vote on the list of dissidents.
"We are in contact with activists," Kumar said . ".
"Talking to both sides is part of our policy.