A leading investment industry group has praised The Mail’s campaign to boost shareholder democracy after a study showed a sharp rise in small shareholders making their voices heard.
Data from the Association of Investment Companies (AIC) showed that half of self-directed private investors – individuals who manage their own portfolios – were using their shares to vote at company meetings, up from 38 per cent just two years ago.
There was also an increase in the number of people attending annual meetings, where investors are able to elect board members and question the management.
The AIC said nearly a fifth of private investors reported that they attended annual meetings occasionally or frequently, up from just 13 per cent in 2023.
Accountability: There has been an increase in the number of people attending annual meetings
The rise in voting activity and attendance follows campaigning by the Mail to encourage small investors to engage with firms whose shares they hold.Â
It is also urging investment platforms to make it easier for users to vote. ‘The Mail’s ongoing campaigns to boost shareholder engagement have really helped get the vote out for investment trusts during a critical period. We are grateful for the Mail’s support of our ‘My share, my vote campaign’ to make voting easier for all investors,’ said AIC boss Richard Stone. ‘Building an investment culture in the UK is critical to driving economic growth, and shareholder democracy has to be one of the core principles.’
The rising number of smaller investors using the power of their votes follows a recent spate of attempts by activist funds to take over British companies. Earlier this year, aggressive US hedge fund manager Boaz Weinstein tried to oust the boards of seven London-listed investment trusts and replace them with his allies.
He was defeated by an army of small shareholders in each trust who turned out in droves to vote against his plans.
The drive to encourage smaller investors to engage with firms in their portfolios comes as the Chancellor draws up plans to encourage more investment in Britain, with ideas thought to include forcing people with ISAs to invest a minimum in UK firms.
City figures say promoting shareholder participation should be key to the strategy, arguing smaller investors would be more willing to put cash into UK firms if they feel they have a voice.
In the summer, the Governance for Growth Investor Campaign, a group of powerful investors, said face-to-face shareholder meetings, many of which are being replaced by online-only gatherings, were ‘a cornerstone of the financial system’ and key to sustainable economic growth.
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