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Quarterly reporting falls as companies focus on the long-term

Monday 4 September 2017

  • Over 40% of FTSE 100 companies, and over 60% of FTSE 250 companies, no longer issue quarterly reports to shareholders.
  • The number of FTSE 100 companies that issue quarterly reports has declined by 19%, with 43 companies no longer reporting quarterly
  • The number of FTSE 250 companies that issue quarterly reports has declined by 25%, with 167 companies no longer reporting quarterly

The Investment Association’s call for companies to stop quarterly reporting is being heeded, with the number of FTSE 100 and 250 companies issuing quarterly reports since October 2016 declining by 19% and 25%, respectively.

In a bid to discourage companies from engaging in short-term behaviour, such as managing the business to meet quarterly targets rather than developing their long term strategies, the IA called on companies to stop issuing quarterly reports and earnings guidance. This formed part of the IA’s wider Productivity Action Plan launched in March 2016 which aims to help boost UK productivity through long-term investment and enhanced investor stewardship.

Eighteen months since its launch, the Investment Association has completed over half the recommendations it set out for the asset management industry to take in 2016 and is on track to complete the remaining actions by 2019.

These include publishing Long Term Reporting Guidance, which sets out guidelines for company reporting on productivity, capital allocation and culture, and the creation of a Stewardship Reporting Framework to assist asset managers on reporting their stewardship activities. Both initiatives aim to help investors make better informed, long-term investment decisions and encourage companies to focus on the long-term drivers of value creation in their business.

Chris Cummings, CEO of the Investment Association said:

“The UK’s productivity puzzle is one of the biggest challenges of our generation. Solving it is crucial to closing the gap with our major international rivals and to helping the UK become more competitive on the global stage.

‘Stronger, more productive businesses are more likely to deliver the long-term investment returns for the millions of people whose savings and investments are managed by our industry”.

Over the next twelve months, the IA will focus on delivering the remaining recommendations in the Productivity Action Plan. As part of this, the IA will look to develop best-practice guidance on how long-term investment principles can be better incorporated into investment mandates, as well as developing a standard approach across the asset management industry for calculating average holding periods.

- ENDS -

Notes to editors

To view the Productivity Action Plan Implementation Update, please visit the IA website here

Quarterly reporting image

For further information, please contact:

Linsey White
Head of Media Relations
linsey.white@theia.org
T +44 (0)20 7269 4635
M +44 (0)7508 724 022

Helen Ayres
Media Relations Manager
Helen.Ayres@theia.org
T +44 (0)20 7269 4620
M +44 (0)7508 724 066

About the Investment Association:

  • The Investment Association is the trade body that represents UK investment managers who manage over £5.7 trillion on behalf of clients
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.