New guidance urges FTSE companies to demonstrate how they act long-term to get better returns for savers and investors

Tuesday 9 May 2017

The Investment Association (IA) has today published new long-term reporting guidance aimed at driving change in FTSE listed companies, which will help to boost investor confidence and address falling UK productivity levels.

The guidelines outline critical concerns of the UK’s £5.7 trillion asset management industry on what is expected of companies that choose to list in the UK. The publication follows the IA’s call in October 2016 to abolish quarterly reporting in favour of meaningful long-term reporting, and sets out a detailed set of recommendations to help listed companies report more transparently and effectively on the long-term drivers of productivity, capital allocation, human capital, and company culture.

The guidance will allow investors to better identify, support, and finance companies that deliver long-term returns to shareholders, contribute towards long-term economic growth, and help build a more productive economy. The guidance represents one of the main strands of the IA’s three-year Productivity Action Plan published in March 2016, which sets out what the asset management industry is doing to help spur the UK’s productivity by improving long-term investment in the UK.

Andrew Ninian, Director of Stewardship and Corporate Governance at the Investment Association, said:

“The best way to boost productivity and long term returns in the UK is to shift the way many big companies operate away from a short term focus, to more long-term decision-making. This will ultimately benefit the economy as a whole by creating more jobs, higher levels of growth and stronger returns for savers.

“All businesses need access to long-term funding to grow, but many who take a long-term view are not currently maximising their appeal to investors. This guidance will help responsible companies get noticed by investors, by providing them with the information they need to make informed, long-term investment decisions.”

The IA is encouraging all UK-listed companies to adopt the guidance as soon as possible. The Investment Association’s influential corporate research service, the Institutional Voting Information Service (IVIS) - which is used by investors to make voting decisions on companies they invest in during the AGM season- will be responsible for monitoring the implementation of the long-term reporting guidance. It will begin to do so through the analysis of company Annual Reports for year-ends on or after 30 September 2017.

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For further information, please contact:

Linsey White
Head of Media Relations
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M 07508 724 022

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.