The initiative considers the apparent barriers to long-term investment and how the funds industry can help businesses drive sustainable returns.
It was developed through a 15-strong industry steering committee of asset managers, including the likes of Richard Buxton, CEO at Old Mutual Global Investors; Helena Morrissey, CEO at Newton; Rod Paris, CIO at Standard Life Investments; and Trevor Green, Aviva’s head of UK equities.
The action plan includes initiatives to enhance company reporting for efficient capital allocation; enhance investor stewardship and engagement; and simplify behavioural incentives and the investment chain.
It also wants to develop efficient and diverse capital markets; and overcome tax and regulatory impediments to the provision of long-term finance.
“Productivity improvements can help drive economic growth and require UK businesses to invest for the long term,” said the IA’s director of corporate governance, Andrew Ninian.
“The action plan seeks to deliver ambitious and achievable remedies to the ills of some of the most serious causes of short-term thinking in the British economy. The investment industry remains steadfast in its commitment to play its part in fixing the UK productivity puzzle and help fix the challenge of our generation.
“Fixing the UK’s productivity puzzle is a difficult task and the solutions are far from simple. This is a challenge that affects every corner of society and calls for a multifaceted response from the UK’s leading business and economic stakeholders. We hope this action plan plays a part in improving UK productivity.”
Led by interim CEO Guy Sears, the IA recently split its workload into three core divisions, Business Support and Promotion, Products and Services and Sustainable Investments and Capital Markets.
