UK pension funds have been urged to take the lead role in the monitoring of equity investment management following the release of the interim report of the Kay Review today.

The Kay Review report which covers UK equity markets and long-term decision making suggests that improvements are needed in the governance of companies, the ways in which economic activities are measured, greater liquidity and transparency in investment markets and also in the structure of the savings market. The UK Sustainable Investment and Finance Association (UKSIF) today highlighted that a ‘call to action’ for all pension funds and plan sponsors is needed to ensure that these improvements are carried out.

UKSIF chief executive Penny Shepherd said: “The turbulence of the last few years has highlighted the urgent need to fix the broken investment chain and we warmly welcome this interim report.

“We need to change the rules of the game for the better. Effective transparency and procurement are not the sexiest of topics, but they are the ones that must be embraced if we want to create genuine long-term relationships between companies and investors.

Emphasising the fact that there needs to be a stop to short-termism in UK equity market investment, UKSIF chair Martin Clarke said that this report will help to ensure “that UK equity markets allocate capital most effectively for long-term wealth creation”.

Share Story: