English:
Hello,
Recently, the US NASDAQ exchange has changed their rules to allow IPOs like SpaceX and OpenAI to steal pension funds.
Concretely, they have changed the period from a listing to inclusion in the index (NASDAQ100) from 3 months to just 3 weeks, removed the 10% free float requirement, and changed the weighting of companies with under 20% float to have triple the weight they normally would.
These changes aim to force the hand of passive investment products based on indices to invest in them to generate demand faster, before price can settle, and pump up the price by reducing supply, allowing the current private owners to sell out to passive funds who are unwilling forced buyers.
SpaceX is intending to IPO with only around 5% of the company available for trading at the peak of a bubble, and OpenAI is expected to follow soon after. Furthermore, SpaceX is unable to sell to institutional investors, "reserving" an unprecedented 30% of the offering for less sophisticated retail investors, 3-5 times as much as normal, a huge red flag.
These Youtube videos all outline the problems in more detail
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youtube.com/watch?v=8rS3fTbC7TE -
youtube.com/watch?v=iOyFja87uyw -
youtube.com/watch?v=-X6YzlY_8tMAll of this adds together to form a grim picture of the financials of these IPOs, ignoring the moral issues with sending money to the owners of these companies, and I do not wish to fund this.
I therefore have three questions I would appreciate if you could answer:
1) does any of your pension products rely on passive funds tracking the NASDAQ100? If so, which percentage (range) does each of your products allocate to this?
2) are you planning to participate in these IPOs designed to steal pension funds, whether passively or actively, during IPO or in the months following? If so, which percentage (range) does each of your products allocate to this?
3) will you be offering a way to opt out of these morally questionable products?
I am collecting answers to this from all pension funds I have funds with and will be publishing the information gathered from each online to allow others to draw their conclusions as well.
Thanks in advance for your reply,