Institutional investors flock to Stewardship Code
GLOBAL - The Financial Reporting Council (FRC) has published the names of institutional investors that have signed up to the Stewardship Code.
In sum, 68 institutions have published statements of support for the Code, including 48 asset managers, 12 asset owners and eight service providers.
Baroness Hogg, chairman at the FRC, said the figures represented a "critical mass" of investors coming through.
"Not only do we wish to see these numbers increase, but we also want to see a better integration of governance and investment processes that will be vital in ensuring effective implementation of the Code," she said.
"In that respect, actions will speak louder than words."
The list includes a number of industry heavyweights such as BlackRock, Fidelity Investment Managers, M&G Investment Management, Threadneedle Asset Management, Mercer, the California Public Employees Retirement Scheme and the Australian Council of Superannuation Investors.
Baroness Hogg said the high-calibre support showed that the principle of stewardship "resonated broadly" outside the UK.
"Clearly," she added, "the continuing success of the Code will depend on how effectively investors deliver on their commitment to adopt it, and the FRC will be monitoring the degree to which today's public statements of support are implemented in practice."
The Stewardship Code, launched by the FRC earlier this summer, aims to promote more active discussion between company boards and investors to improve the quality of corporate governance and long-term company performance.
It has been welcomed for spelling the end of a 'tick-box approach' to governance, but some in the industry have warned it needs to be strengthened.
For the full list of the organisations that have committed to the Code, click here.