Press releases

19 October 2010

AIC welcomes promotion of stewardship agenda

Financial Reporting Council continues support of the Stewardship Code

The Association of Investment Companies (AIC) warmly welcomes the Financial Reporting Council’s (FRC) commitment to promoting the Stewardship Code and hopes that publishing details of all signatories on its website will encourage managers and their clients to enter into more constructive dialogue on stewardship issues.

Ian Sayers, Director General, AIC, said: “The publication of the Stewardship Code was an important milestone in the engagement debate.  It will help enhance dialogue between institutional shareholders and boards.  I hope it will also influence European attitudes where the approach to governance and stewardship continues to be debated.  The Code is a sensible model which I would encourage European policymakers to support.

“Today’s launch will help develop the stewardship agenda because it will provide direct access to managers’ policies.  It will act as a central reference point for their clients to compare different approaches to engagement.  It should help stimulate debate and the evolution of best practice.

“The AIC is encouraging investment company boards to consider the Stewardship Code when agreeing voting and governance policies with their managers.  This is set out in the AIC’s Code of Corporate Governance, which is endorsed by the FRC as a means for investment companies to report their governance arrangements.  The AIC Code is important because the structure of many investment company boards, many of which are made up entirely of non-executive directors, raises unique considerations.  The AIC Code fully reflects the requirements of the UK Code but also covers other areas such as stewardship and relations with the manager.  We are grateful to the FRC for its continued support on this agenda.”

- Ends –

Notes to Editors

1. The Association of Investment Companies was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed ended investment companies, incorporating investment trusts and other closed ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 354 members and the industry has total assets of approximately £92.1 billion.

2. Download the AIC Code of Corporate Governance.

3. Download the FRC’s Stewardship Code.

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