Corporate Actions – The Case of the Missing Billions


SCORPEO’s Chief Investment Officer, Shivesh Jha attends the Financial Services Club as lead speaker on ‘Corporate Actions – The Case of the Missing Billons’.

Asset managers frequently need to take action with regard to corporate actions such as scrip dividends, rights issues, tenders and mergers. If we take the example of a scrip dividend, a phenomenon very popular with large European companies, shareholders can elect to receive their dividend in cash or in additional shares in the company. When shareholders make their election, often one of the options (cash/stock) is worth more than the other. But do investors frequently make the suboptimal election in scrip dividends, do asset managers sometimes make the wrong election at an even higher rate than the average investor, at 56%. Is around $1.3 billion missed by investors each year? Can the problem of suboptimal elections can only be solve through automated solutions?

To watch the seminar in full, click here.