Officials Called on FTSE Russell to Review Standards After Company's Performance Decline and Governance Concerns
VermontBiz Treasurer Pieciak recently led a coalition of state fiscal officers challenging the continued inclusion of Trump Media & Technology Group (TMTG) in the influential Russell 3000 Index. The joint letter calls for stronger safeguards to protect market integrity and ensure the index reflects sound financial fundamentals.
Financial leaders cited TMTG's dramatic stock decline – losing more than half its value since index inclusion and nearly three-quarters from its peak – along with negligible revenues, extreme volatility, and governance concerns as evidence that the company undermines the index's credibility.
Officials emphasized that TMTG's inclusion in the Russell 3000 triggers automatic investment flows through index funds, with about $10.6 trillion in assets now flowing into the company regardless of its performance. The letter argues this automatic flow makes FTSE Russell "an active participant in the company's enrichment" while putting public pension funds at unnecessary risk.
“I led this effort because every day, public pension funds, retirement accounts, and college savings plans are invested in the Russell 3000,” said Vermont State Treasurer Mike Pieciak. “Trump Media & Technology Group is just like the man it’s named for – phony, inflated, and dangerous to working people. Its value isn’t grounded in business fundamentals and including such a reckless company in the Russell 3000 puts retirees, workers, and taxpayers at risk.”
The letter was also signed by Rhode Island State Treasurer James Diossa, Maryland Comptroller Brooke Lierman, Massachusetts State Treasurer Deborah B. Goldberg, New York State Comptroller Thomas P. DiNapoli, Connecticut Treasurer Erick Russell, and New York City Comptroller Brad Lander.
Officials requested that FTSE Russell provide a clear explanation of its inclusion criteria, an assessment of how it has accounted for TMTG's financial instability and governance concerns, and a statement of safeguards to ensure future inclusions reflect sound market fundamentals.
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