IMA Stewardship Survey - institutional box-ticking or genuinely increased engagement?

At the very least, this survey shows that an increasing degree of lip service is being paid to the pressing issue of institutional investor engagement and hopefully much more than just that. Liz Murrall, Director of Corporate Governance at the IMA, said:

“Transparency, through public disclosure, is imperative for demonstrating and exercising accountabilityquot;.

Transparency is an important feature of effective stewardship. Institutional investors should not, however, be expected to make disclosures that might be counterproductive.

Anyway, moving along to the topic at hand, the survey now claims encouragingly that:

  • More than 90% of institutional investors now vote on shares they hold in UK companies
  • A further 49 publish statements on their adherence to the Financial Reporting Council's code of practice.
  • Nearly two-thirds of the polled also published their voting records on shareholding

Six in-depth case studies are discussed in the study to illustrate where serious engagement between investors and companies proved valuable, namely:

However, AccountancyAge observes that this self-congratulation should be taken with a pinch of salt: 

quot;No surprises there then. It would have made interesting reading however if the IMA had uncovered less-than-perfect practices among investment managers. This, at least, would have made the study seem more independent and less self-servingquot;.

 


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