The Investor Forum

It doesn’t seem so long ago that we were letting you know all about the Kay Review, the independent assessment of short-termism in the UK equity markets, but it’s been over a year.

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February 2013 saw Professor John Kay release his findings for ‘The Kay Review of UK Equity Markets and Long-Term Decision Making’, which you can find summarised in our Need to Know article. The report set out a number of recommendations, principles and directions to combat short-termism, one of which was the creation of an investor forum.

The idea behind the investor forum lies in the collaboration between asset managers and asset owners to improve sustainable, long-term company performance and overall returns to savers.

Since the launch of the Kay Review, the Investment Management Association (IMA) established the Collective Engagement Working Group in April 2013, which looked to establish this investor forum to create collaboration not just in the UK but internationally.

The forum is expected to be a place for investors to come together to discuss important issues and collectively help to promote a long-term culture. Sustainability and wealth creation are core drivers of this change and are key to shifting the culture between institutional investors and companies.

As of March 2014, the working group is looking at what the infrastructure of this forum will be, alongside governance and secretariat. A formal constitution is under development, candidates for the forum director role have been shortlisted and the governing body identification is well underway.

The investor forum is expected to be fully operational by the end of summer this year so look for our updates or keep an eye out at www.theinvestmentassociation.org.