Commenting, Liz Murrall, Director of Corporate Governance and Reporting at the IMA, said:

“The IMA welcomes the EU’s steps to enhance the diversity and functioning of boards. We also welcome its examination of the uncertainties around collective engagement.

“However, we do not accept statements that suggest asset managers are motivated by short term considerations. The great majority manage clients’ money in ways that seek to build value over the long term."

“The paper suggests that regular monitoring of performance and the payment of fees on a quarterly basis create a short term approach. There is no evidence for this. Instead, all the evidence shows that while performance is monitored regularly, clients award new mandates based upon performance over five years or more. Moreover, an individual portfolio manager’s performance is assessed on a medium- to long-term basis of three and five year timeframes."

“The Green Paper addresses some important issues, but certain charges do not stand up.”

Press release