Schroders urges FTSE 350 firms to ditch quarterly reporting

Schroders-Building-700x450.jpgSchroders has joined LGIM in its calls for FTSE 350 firms to shed quarterly reporting.

Schroders wrote to all FTSE 350 companies at the end of last week to urge them not to continue publishing quarterly results as it encourages a short-term approach and is time consuming.

The rules from the accounting watchdog the Financial Reporting Council changed a year ago, meaning companies no longer have to publish interim management statements, which fall between half yearly reporting.

But it is believed fewer than 10 companies have dropped quarterly reporting since the changes came in.

Legal & General Investment Management has already written to FTSE 350 firms encouraging them to drop quarterly reporting if it doesn’t suit their firm.

Schroders, which manages £310bn, is hoping that adding its not-inconsiderable weight to the conversation will help to change companies’ opinions.

A Schroders spokesperson said: “Schroders has written to the UK listed companies in which we invest to encourage them to review their approach to quarterly earnings.

“We are keen not to be prescriptive, and recognise the individual needs of specific companies. We will not view companies negatively if they decide to maintain the status quo.”

The letter from LGIM’s chief executive Mark Zinkula, sent in June, acknowledged that companies with “shorter market cycles and companies in a highly competitive global market” may want to continue reporting quarterly.

“While each company is unique, we understand that providing the market with quarterly updates adds little value for companies that are operating in long-term business cycles,” Zinkula said.