The UK Stewardship Code was first introduced in 2010, setting the benchmark for institutional investors to meet ownership responsibilities in respect of their holdings of UK equities – M&G has been supportive of the Code since its inception.

The Code is voluntary and operates on a comply-or-explain basis. Compliance with the Code is monitored by The Financial Reporting Council – the independent regulator overseeing financial reporting, accounting and auditing, and corporate governance.

We recognise the importance of accountability to our clients for the stewardship of their assets and comply fully with all of the Code’s principles in respect of UK-listed equity investments. We obtain independent assurance of our compliance with the Code, and publish a copy of our Stewardship Assurance Position on this website.

We seek to add value for our clients by pursuing an active investment policy through portfolio management decisions, maintaining a constructive dialogue with management and by voting on resolutions at general meetings. Our investment teams and dedicated Corporate Finance & Stewardship team are committed to active engagement with investee companies to enhance value for our clients.

Our approach to stewardship extends beyond investing in UK equities, and its principles are outlined below.

  • Stewardship policy – institutional investors should publicly disclose their policy on how they will discharge their stewardship responsibilities
  • Managing conflicts of interest – institutional investors should have a robust policy on managing conflicts of interest in relation to stewardship, and this policy should be publicly disclosed
  • Monitoring investee companies – institutional investors should monitor their investee companies
  • Escalation of stewardship activities – institutional investors should establish clear guidelines on when and how they will escalate their stewardship activities
  • Collaborative engagement – institutional investors should be willing to act collectively with other investors where appropriate
  • Voting – institutional investors should have a clear policy on voting and disclosure of voting activity
  • Stewardship and voting reporting – institutional investors should report periodically on their stewardship and voting activities

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.