Investment trusts lag FTSE companies on gender diversity
In 2019, the majority of new board appointments were women, who accounted for 35 out of 50 appointments.
6th January 2020 11:34
by Tom Bailey from interactive investor
In 2019, the majority of new board appointments were women, who accounted for 35 out of 50 appointments.
Investment trusts are lagging behind other listed companies when it comes to promoting gender diversity on their boards, according to the new research.
According to the Hampton-Alexander Review, released in November 2019, the FTSE 100 is collectively on track to achieve its 33% target for women on boards in 2020, with women now holding 32.4% of all boards at the end of 2019. This is up from 30.2% in 2018 and 12.5% in 2011. The FTSE 250 index is also expected to meet the same target.
However, when it comes to investment trusts listed on FTSE indices, the numbers are lower, according to a report released by Winterflood, the investment trust broker. There are 69 investment trusts listed on the FTSE 350 and two listed on the FTSE 100. In total, 45 of the 69 trusts (65%) listed on the FTSE 350 are failing to meet the 33% target. Meanwhile, nine of the 69 investment trusts had a female char of the board.
However, the number of women on boards of trusts did continue to increase from previous years. In particular, in 2019 the majority of new board appointments were women, who accounted for 35 out of 50 appointments.
Winterflood also noted several trust’s as taking a “one and done” approach to the inclusion of women on their board. The report noted that of the 18 trusts that have only one female director, 13 were flagged as taking a “one and done” approach for the second year running. These include City of London (LSE:CTY), Monks (LSE:MNKS), Smithson Investment Trust (LSE:SSON), Templeton Emerging Markets and JP Morgan American.
According to Winterflood:
“There will be some who dismiss the increasing focus on gender diversity on the boards of the UK’s leading companies as evidence of the growth in ‘woke culture’. Whatever your view, it is clear that institutional shareholders are increasingly compelled to vote against boards that do not meet prescribed levels, while shareholder advisory services have adopted stringent policies on the issue.”
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.