The number of UK Stewardship Code signatories has increased 60% over the last two years, according to the Investment Management Association (IMA).
The IMA’s fourth report on Adherence to the Financial Reporting Council’s (FRC) Stewardship Code revealed the number of signatories to the code increased to 274 in 2013 from 241 in 2012 and 172 in 2011.
The report also found 90% of respondents reviewed their code statements in 2013 with 67% updating them, compared with 77% and 29%, respectively, in 2012.
The 114 respondents to the report included asset managers with £708bn of UK equities under management, representing 32% of the UK equity market, and asset owners with £38bn of UK equity exposure.
IMA director of corporate governance Liz Murrall said: “Engagement is a core part of the investment process in ensuring sustainable long-term results are delivered for end investors or clients. It’s encouraging that signatories to the FRC’s Stewardship Code are increasing and we’re also pleased that the response rate to our questionnaire is steadying. This means we are building a core group that will help to demonstrate how stewardship evolves over time.
“In addition, wider industry initiatives such as the launch of a new Investor Forum this summer and the merger of the ABI Investment Affairs Division with the IMA will all help to support the industry’s stewardship of its investee companies.”
Elsewhere, the report found the proportion of asset managers that report that stewardship is referred to in their clients’ mandates rose to 83% in 2013, from 71% in 2012. In particular, for 44% of asset managers, stewardship is referred to in all clients’ mandates, compared to 30% in 2012.
Institutional investors also increased the headcount responsible for engagement by almost 400 people in the year to 30 September 2013, according to the report.
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