Investors call for Snap not to be included in market indices
Monday 27 March 2017
The Investment Association (IA) is today calling upon the world’s leading indices to not include companies that do not have voting rights in their respective indices.
The IA, whose members manage over £5.7 trillion on behalf of clients globally, has written to the FTSE Russell, MSCI Global and S&P Dow Jones Indices highlighting that its members do not want them to include companies that do not have any listed voting shares.
The letters outlines that the IA and its members are not in favour of companies with differential share ownership structures, where companies offer limited or enhanced voting, or other ownership rights to different classes of shareholders, being included in the indices.
The IA membership instead wants indices to include companies that have true ‘equality of ownership’, and strongly supports the principle of ‘One Share – One Vote’.
‘One Share – One vote’ ensures the equal treatment of all shareholders by allocating control of a company in direct proportion to total economic interest and the level of exposure to investment risk. This proportionate approach protects the rights of minority shareholders.
Andrew Ninian, Director of Stewardship and Corporate Governance, said:
“Investors of all shapes and sizes need to have a voice in how the companies they own are run.
“Our members see the governance of investee companies as an integral part of the investment process and believe that only well governed companies will protect and enhance shareholder value over the long-term.
“We have written to the indices to outline our members’ support for proportionate ownership structures that mean that a company’s management must remain accountable to all shareholders, and to ensure that the recent example of the Snap listing does not set any market precedent.”
- ENDS -
For further information, please contact:
Alex Hogan
Communications Manager
[email protected]
T 020 7269 4620
M 07508 724 066
Notes to editors:
The Letters can be viewed here.
About the Investment Association:
- The Investment Association is the trade body that represents UK investment managers who manage over £5.7 trillion on behalf of clients
- Our purpose is to ensure investment managers are in the best possible position to:
-
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.
For further information, please contact:
For media, to receive the full consultation document, please contact Helen Ayres
Helen Ayres, Communications Manager: [email protected]
T +44 (0)20 7269 4620; M +44 (0)7508 724 066
IA press office: [email protected]
About the Investment Association (IA):
- The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the asset management industry supports 100,000 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 35% of all assets managed in Europe.
