The Blog

Bridging the Gap: The Evolution of Investor Engagement in the UK

By Sarah Penney 

As a novice investor, my primary focus has been on maintaining a healthy portfolio and identifying investment opportunities. However, my involvement with The Engagement Appeal (TEA) and FinGlitz has opened my eyes to the crucial role of investor engagement and the importance of being more actively involved with the companies I invest in. 

The Current State of Investor Engagement 

Many individual investors don’t prioritise engagement with the companies they’re invested in. Often, they don’t know that they can attend AGMs, that they can pose questions to management and that they can vote on important company decisions. 

At the same time, many companies don’t prioritise connecting with individual shareholders. They often believe their time is better spent engaging with a smaller number of institutional investors and underestimate the power of retail. 

There are, however, many individuals and organisations that recognise the need to improve financial education and awareness on one side and encourage companies to dedicate more time and effort to individual shareholders on the other. 

TEA is one such organisation, working to address the engagement gap by fostering bilateral relationships between companies and investors. They are unique in taking this two-way approach, but there are many other organisations within the investment landscape doing brilliant work that compliments that of TEA. 

Here are some of the key players working with companies to improve the investment engagement landscape: 

• Corporate governance organisations: Including the Institute of Directors and Chartered Governance Institute, focus on improving transparency and accountability in corporate management. 

• Shareholder advocacy groups: Such as Share Action, work to promote shareholder rights and engagement. 

• Sustainable investment networks: Organisations, such as the UK Sustainable and Investment Finance Association, promote responsible investing and shareholder activism. 

• Fintech platforms focused on investor engagement: Companies, such as Tumelo, developing technology to connect investors with the companies they invest in. 

• Proxy advisory firms: In the UK there are four proxy advisory firms that provide research and recommendations on shareholder voting issues. 

• Investor relations professional associations: Groups, such as the Investor Relations Society, working to improve communication between companies and their investors. 

There are also many great organisations working to help investors be more responsible, and to their knowledge base. Some of those include: 

• Financial education blogs: Like Boring Money, an independent financial information website aimed at helping people make better investment decisions. 

• Newspapers: Such as the Financial Times, which is focusing on elevating its personal finance coverage to boost education around investment 

• Influencers: There’s a whole new world of ‘finfluencers’, providing content to help people make better investment and personal finance decisions, read about my favorites here. 

• The Money and Pensions Service (MaPS): Formerly known as the Money Advice Service, this is a government-sponsored organization that provides free and impartial financial guidance. 

• Retail investor associations: Groups, like the UK Shareholders’ Association, representing the interests of individual investors and providing education and advocacy for individual shareholders. 

• The Personal Finance Society (PFS): Provides education and qualifications for financial advisers, but also offers resources for individual investors. 

• Investment platforms: Most investment platforms offer educational resources as well as facilitating the buying and selling of investments. 

The Unique Role of TEA and FinGlitz 

While the proliferation of organisations working with both companies and individuals is crucial for UK market progress, TEA fills a critical gap by: 

1. Bringing together companies and individual investors for mutual benefit 
2. Engaging effectively with both investors and companies 
3. Leveraging expertise in corporate engagement and investor relations 
4. Incorporating perspectives from Gen Z entrepreneurs, artists, and community leaders 
5. Providing a platform for engagement, with FinGlitz, offering a place where companies and the next generation of investors come together 

A busy ecosystem with organisations keeping both companies and investors in check, advocating for responsible and sustainable practices and helping companies strive for the highest levels of corporate governance is crucial to a strong capital market.  

We’re lucky to have such a thriving ecosystem in the UK and to have an organisation like TEA, which occupies a unique position, bridging the gap between companies and individual investors, fostering proactive engagement and understanding. 

This approach could significantly impact the landscape of investor relations and corporate governance in the UK. 

Sarah Penney is TEA’s Millennial Money Writer, covering personal finance and investing from the perspective of a young millennial building a career, travelling the world and navigating the world of investing. She explores subjects that promote understanding of markets, investment trends, and macroeconomics, through her lense. 

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