IMA applauds adherence to Stewardship Code

INVESTORS are strong when it comes to following the FRC's Stewardship Code, according to the Investment Management Association.

It monitored 50 members and found good levels of adherence, with more than 90% of major institutional investors now voting all or the majority of their shares in UK companies, and almost two-thirds publishing their voting records.

Six in-depth studies on how members dealt with controversial issues revealed that in more than 80% of cases, institutional investors felt they had achieved their set objectives for engagement. The studies included remuneration at Tesco and the environmental impact of Canadian oil sands projects at Royal Dutch Shell.

Liz Murrall (pictured), author of the survey and director of corporate governance and reporting, said: "Much of the dialogue between companies and their investors takes place behind closed doors, but our survey illuminates that process, showing real and productive engagement which ultimately improves the governance of major UK companies."