We have devised and launched an industry-wide Productivity Action Plan to boost the UK economy through long-term investment, helping to reverse the UK’s Productivity problem.
The Action Plan has been welcomed by Government and was referenced by the Chancellor in the 2016 Budget. It aims to catalyse the provision of long-term finance and enhance investor stewardship.
Following a comprehensive review led by an industry Steering Committee made up of CEO’s and senior asset managers of some of the largest investors in the UK, the Action Plan was launched. The Committee developed a framework for considering the barriers to long-term investment and how the industry can play a vital role in helping businesses to drive sustainable returns. This formed the basis and conclusions of the Action Plan, and five principal objectives are:
Enhance company reporting for efficient capital allocation – through investment and analytical expertise the industry will identify and finance those companies contributing productive growth in the economy.
Enhance investor stewardship and engagement – the investment industry will engage with companies to help them achieve sustainable value creation over the long term and support investments in improved productivity.
Simplify behavioural incentives and the investment chain – the industry will work to ensure that the agreed incentives and governance of the investment chain ensure a clear alignment with clients’ long term investment objectives.
Develop efficient and diverse capital markets – as key capital market participants, the investment industry has a key role in the development of asset classes and the efficient functioning of capital markets.
Overcome tax and regulatory impediments to the provision of long term finance– the investment industry should contribute to the debate on tax and regulatory impediments to investment so as to ensure the right long-term outcomes for clients.