Passive index funds, such as Vanguard, BlackRock, and State Street, own about 15% of the shares in Origin Energy. Their votes will be crucial in determining whether Brookfield and EIG Partners can proceed with their $20 billion investment in Origin.
It is ironic that the balance of power in this highly active contest may be held by so-called passive index funds. Index funds – which include the likes of Vanguard, BlackRock and State Street, among others, own about 15 per cent of the shares in Origin Energy . As a bloc, they are hugely relevant in whether Brookfield and EIG Partners can overcome AustralianSuper and spend their combined $20 billion on Origin.
Brookfield and EIG need to win 75 per cent of the votes cast at the scheme meeting, and AusSuper has already promised its 16.5 per cent stake will vote against. How will the passive funds vote? We reached out to several of the largest passive funds, most of which have declined to answer, ahead of the vote. But if history is any guide – and we think it is in this instance – they will vote in favour of the deal. Norges Bank, the $2.2 trillion sovereign wealth fund that is widely considered a passive investor, has confirmed it intends to approve the scheme
Passive Index Funds Origin Energy Brookfield EIG Partners Australiansuper Investment
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