View more on these topics

IMA head urges shareholder activism

The asset management industry should use its power to hold companies to account on behalf of shareholders, the chairman of the Investment Management Association (IMA) argued yesterday.

In a speech to the CFA Society, Robert Jenkins said the “investment community” had played a part in the credit crunch “more than we care to admit. This is by not only by buying flawed derivatives from banks but also by failing to hold their boards to account.

“I would encourage active managers who hold the shares to engage. And I would encourage all shareholders who engage to vote down directors of companies they judge to be poorly run. Hold them accountable. Who else will?” he asked.

Although it is asset managers’ responsibility to maximise returns for clients, company boards should fear consequences if they do not listen to those who represent the companies’ owners, said Jenkins. “Surely [this] must be a good thing for our industry and industry more generally.”

Noting that much shareholder activism takes place behind closed doors, he added it still appeared ineffective.

“A number of prominent money managers testified to the House of Commons Treasury Select Committee that they had demanded the resignation of certain bank directors well over a year ago. These revelations attracted two types of observations: many commentators applauded the previously undisclosed attempts made by institutional managers. Others by contrast bemoaned the impotence of an industry that was ignored.”

While active managers may “vote with their feet” by simply selling a company whose board they are unhappy with, passive investors are sometimes obliged to hold shares in a company and can use this as an opportunity for engagement with boards, he added.


Tax trap for Tories

Conservative MP Richard Spring has branded the hike in income tax for higher-earners as a deeply political move designed to trap the Tories.

Why Treasury took relief road

Financial experts say that scrapping higher-rate tax relief on pensions for high-earners in the Budget was an unnecessarily complex move and simpler measures could have been taken.

What are the key changes to transform pensions?

By Fiona Tait, pensions specialist In her final article for Royal London, Fiona Tait reviews key changes she believes have transformed, or will transform, pensions. In my 12 years with Royal London I have been paid to review, study and explain the numerous changes to pension legislation which have transformed our industry in that time. This is […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm