IMA: Investors are engaging on issues beyond governance

24 June 2013

Institutional investors continue to give priority to issues surrounding corporate strategy and objectives when engaging with investee companies, according to IMA's latest report on adherence to the FRC's Stewardship Code by asset owners, asset managers and service providers.

Strategy and objectives, together with board remuneration, were the most frequently addressed issues, with collective engagement between institutional investors continuing to help meet aligned objectives.

Liz Murrall, IMA Director of Corporate Governance and Reporting, said: “Institutional investors engage on wide-ranging issues related to the long-term strategy and objectives of businesses. In particular, the case studies in relation to a proposed acquisition by G4S and the Xstrata/Glencore merger are examples of how investors successfully engaged and helped steer the direction of these companies to protect or add value for shareholders, the true end clients. The report shows that more people are signing up to the FRC’s Stewardship Code, from 75 signatories in 2010 to 241 in 2012, and it is having a positive impact in practice.”

Press release

Full survey

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