In its response to the interim report of the Kay Review, IMA welcomes the report's emphasis on the role of the asset management industry, and on the importance of stewardship.
The response also notes that the capital markets perform an important service for investors by allowing them transparent access to long term investments.
IMA argues that the performance of companies is the responsibility of managements and Boards. The role of shareholders in exercising their stewardship responsibilities is to hold them to account; shareholders, and by extension the capital markets, do not directly impact performance.
IMA's response also draws attention to the significance of the relationship between asset managers and their clients. This relationship means that investment styles are in large measure the result of client preferences, and this needs to be recognised when considering issues such as over-reliance on benchmarks.
Liz Murrall, IMA Director of Corporate Governance and Reporting, said:
"The interim report raises a good many important issues about the operation of capital markets and the importance of good stewardship. IMA members have demonstrated their commitment to stewardship by signing up to the Stewardship Code, and by their increasing levels of activity.
We welcome the report's clear message that capital markets should first and foremost serve the interests of investors and issuers. And we stress the importance of a proper understanding of the role of asset management within that."
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