The majority of UK retail investors feel undervalued by the companies in which they invest, according to a survey commissioned by The Engagement Appeal (TEA).
The research, conducted on TEA’s behalf by consultancy firm Yonder, found that 52% participants felt that the companies they invested in did not sufficiently engage with them, both in terms of ease of access to information and in levels of communication.
The percentage rose to 59% for shareholders over 35 years old, with the report suggesting that this demographic was likely to have contributed “significant equity” to such companies, and would therefore be expecting greater communication and reassurance.
The report indicated that the survey affirmed findings made by TEA independently, which believes that “much more” needs to be done to ensure retail investors have their voice heard.
The report said: “Over the past 20 years, TEA has noted that there has been a genuine democratisation of buying and selling shares. However, this trend has not resulted in or led to any meaningful improvement on the engagement side.”
Sheryl Cuisia, co-founder and director of TEA added: “[We believe] that all investors should have equal voice in how their investments are managed. We are committed to driving real change by developing solutions that meet the needs of companies and shareholders alike, allowing all stakeholders to benefit from corporate decision making.”
Lord Lee of Trafford, the UK’s first ISA millionaire, said: “We currently live in an era of rapid and ever-increasing digitisation. The traditional model, by which retail shareholders are updated via written communications and physical AGMs, is no longer sustainable.
“It is important that we adopt a hybrid model of dialogue allowing equitable access for all stakeholders with the companies in which they invest. So, whilst I believe there should still be the option of a physically attended AGM, remote access should also be made available.”
See also: Campaign for Better Governance
