Helping Manage The Often Unmanaged Asset
Just as dividends are an asset flowing from equity portfolio holdings, so too are payouts from securities fraud litigation arising from holdings in domestic and foreign-traded portfolios. Institutional investors and pension plans have a fiduciary responsibility to collect the full value of this alternative asset: securities litigation payouts, which we call DIVIDEX®.
Investors’ Fiduciary & Recovery Challenges
For dividend distributions, standard portfolio recordkeeping is sufficient for tracking receipts against dividends owed. By contrast, many plan sponsors and fund managers lack systems to find and then track their securities litigation exposures, evaluate actions to improve recoveries, recover assets and, finally, confirm receipt of full amounts due them through reconciliation processes.
Since a comprehensive system to find, track and recover securities litigation payouts can be cost-prohibitive for institutional investors, too often fiduciaries believed they needed to forego pursuing full payout recoveries on this portfolio asset and instead relied on custodians to obtain recoveries without insight into what was due the investor. This not only impacts an institution’s recoveries; but also it has bearing on fulfilling the organization’s fiduciary responsibilities and corporate governance (ESG) objectives.
Helping You Manage Your DIVIDEX Assets
We developed the DIVIDEX companies — DIVIDEX Management, LLC and DIVIDEX Analytics LLC, and their services and processes — to help plan sponsors and fund managers seeking a more cost-effective means to effectively manage this portfolio asset, enhance their fiduciary oversight and improve recoveries owed them from securities litigation payouts.