Investment - Articles - Scottish Life announces support for UK Stewardship Code

 Scottish Life has confirmed its support of the UK Stewardship Code and is encouraging its fund manager partners to fully disclose where they stand in relation to the Code.

 The Stewardship Code is a set of seven principles introduced by the Financial Reporting Council in 2010. The Code is aimed at institutional investment managers with the aim of enhancing engagement between investment manager and investor. Better engagement can ultimately lead to better long-term returns, and is achieved by efficiently exercising governance responsibilities.

 Asset managers should clearly disclose their commitment to the Code or explain their alternative strategy if they don't commit to the Code.

 Lorna Blyth, Investment Marketing Manager at Scottish Life, said:

 "Since the Code was launched in 2010, many investment managers have signed up to its Principles, but now the focus is on improving engagement. Managers need to understand exactly what this means and how to take it to the next level. And it subsequently needs to effect a change in behaviour for the benefit of the investor.

 "We take the view that investment managers should act as stewards in terms of engaging with companies and attempting to improve corporate performance. So it's important that managers should "comply or explain" clearly."