The number of FTSE 100 companies issuing quarterly reports has dropped by 19 per cent since October 2016, with 43 companies no longer reporting quarterly on the back of the Investment Association’s drive to stamp out the short-termism associated with quarterly reports.
The quantity of quarterly reports published by FTSE 250 companies has also declined, falling 25 per cent, with 167 companies no longer reporting quarterly. Overall, more than 40 per cent of FTSE 100 companies and over 60 per cent of FTSE 250 companies have ceased issuing quarterly reports to shareholders.
The IA has been calling on companies to move away from short-term behaviour since the start of 2016 when it launched the Productivity Action Plan, published Long Term Reporting Guidance for companies reporting on productivity, capital allocation and culture, and created a Stewardship Reporting Framework for asset managers.
Chris Cummings, CEO of the Investment Association, says: “The UK’s productivity puzzle is one of the biggest challenges of our generation. Solving it is crucial to closing the gap with our major international rivals and to helping the UK become more competitive on the global stage.
“Stronger, more productive businesses are more likely to deliver the long-term investment returns for the millions of people whose savings and investments are managed by our industry.”
The IA plans to deliver the remaining recommendations in the Productivity Action Plan over the next 12 months. These will include best-practice guidance on implementing long-term investment principles and developing a standard approach across the asset management industry for calculating average holding periods.