UK: asset managers' public disclosure practices on voting and engagement

FairPensions has published a report titled Stewardship in the Spotlight: UK asset managers’ public disclosure practices on voting and engagement: see here. The report outlines the results of a study of the public disclosure practices and formal responses to the Stewardship Code of 29 of the largest asset managers operating in the UK. The study found, to quote from its conclusion:

The Stewardship Code has enjoyed early success as evidenced by the fact that 24 of the 29 large asset managers included in this study have already issued detailed formal responses. However, there is clearly more to be done in encouraging asset managers to disclose more meaningful information about their compliance with the various Principles of the Code. Increasingly, asset owners are indicating that compliance with the Code will be a factor in the selection of asset managers. On the basis of our review of early published statements, asset owners still need to carefully scrutinise the quality of stewardship activities even amongst managers who have signed up to the Code. In our view, the early evidence on disclosure should leave the FRC in no doubt that a laissez faire approach to encouraging robust stewardship will fail to drive the change which is so necessary to protect the assets of ultimate owners and beneficiaries".