Signatories to the ACT disclosure framework grew by over 50% over the last year, with a further 10 firms joining in 2024.
The ACT Corporate Culture Standard is a framework for investment firms to understand and progress cultural change in a standardised way.
In 2024, the firms that signed up to the ACT List were: Evenlode, Findlay Park, First Sentier Investors, FSSA Investment Managers, Jupiter Asset Management, Morgan Stanley Investment Management, Nedgroup Investments, Ninety One, Premier Miton, and Stewart Investors.
Signatories on The ACT List have committed to annually completing ACT reporting on the DOOR platform, which enables the framework to be used as a tool to assess progress on culture.
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There will also be senior accountability among firms towards policy, action and practice that supports alignment of internal values and external commitments relating to inclusive culture.
Currently, 27 firms representing $6.6trn assets under management have signed up to the framework.
Co-CEOs of City Hive, Bev Shah (pictured left) and Mandy Kirby (pictured right), said: “The steep increase in ACT Signatory numbers shows firms recognise the value of transparency with their clients about their values and culture. Understanding and assessing the corporate culture of those managing your assets is essential for mitigating risk.”
The pair added the ACT Stewardship Council of fund gatekeepers, representing $2.2trn in assets under advice, had been calling for more firms to sign up to the ACT Framework and its commitments, and is targeting 50 signatories by the end of 2025.
Commenting on the group’s new signatory status Rose Vangerven, CEO designate for Findlay Park, said: “We see culture as a critical factor to consider when we invest. But we also know culture is very hard to gauge, especially in smaller firms. So we completely understand the value ACT brings to our investors, as a window into investment firm culture.”
Meanwhile, Jonathan Willcocks, global head of distribution at new signatory Premier Miton Investors, added: “Having the right culture across the organisation is an integral ingredient for success, but it is also increasingly becoming an important criteria for fund selectors and investors alike when looking at asset managers. In addition, being transparent about what you do as an organisation is crucial when building trust with clients.”
David Coombs, head of multi-asset investments at founding Signatory firm Rathbones Asset Management, and also member of the ACT Stewardship and Global Leadership Council, said the ACT Framework brings accountability and better outcomes for clients:: “To be successful in asset management, you need to attract, develop and retain a diverse pool of talent. That means bringing a broader understanding of cultures, trends and life experiences within a supportive and inclusive culture.
“We must also rightly demonstrate to clients that our senior fund managers are supported and challenged by high quality colleagues, and that we are no echo-chamber, surrounded by the same faces and noises. The ACT Framework provides guidance in identifying what this good governance should look like and crucially, it brings in the all important element of accountability.
“Finally, I do think it is important to work with industry peers to try and encourage best practice when it comes to adopting an inclusive culture. I believe this results in better outcomes for all our clients and our people, as well as encouraging new talent, who may feel finance remains the preserve of the rich, the posh and the few.”
This article first appeared on PA Future’s sister site Portfolio Adviser
