JEFF PRESTRIDGE: Making investors feel loved should be goal for companies

While dividends are a form of financial appreciation for being a shareholder, much more needs to be done to ensure that investors feel wanted and valued for their commitment to UK plc. Not only by companies listed on the UK stock exchange, but also by those companies (platforms) that enable investors to build online stock portfolios.

Luckily I’m not the only one. Earlier this month, Group Business Editor Ruth Sunderland reported on the launch of a high-profile campaign (Share Your Voice) to boost shareholder democracy.

Spearheaded by Archie Norman, chairman of Marks & Spencer – and backed by investor lobby groups ShareSoc and the UK Shareholders’ Association – the campaign calls for sweeping changes to company law that pave the way for greater shareholder empowerment.

In a nutshell, the changes – if implemented – would lead to more interaction between companies and their shareholders and would give companies the right to hold digital-only AGMs that would allow more investors to participate.

They are long overdue and are essential for encouraging people to invest in companies, showing interest in the companies they support and, when necessary, holding management accountable on issues such as executive compensation and the environment.

I was recently reminded of the current messy relationship between shareholders, companies and investment platforms when I unexpectedly received a letter from investment giant BlackRock. It was an invitation to attend the annual general meeting of his investment trust, World Mining.

I have shares in the fund through my online Isa, and while they’ve performed a bit poorly lately (down six percent over the past year), the previous 12 months have been much better (up 35 percent).

The invitation is the first I’ve ever received from the various publicly traded mutual funds that form the backbone of my Isa – and it was quite a nice surprise.

In a world where most of our investments are held in huge nominee accounts managed by the platforms we invest through, any direct relationship between companies and their shareholders has evaporated.

There is very little involvement and shareholders rightly feel disenfranchised and unloved.

I jumped at the chance to attend the World Mining AGM. It’s this Tuesday — in London, where I work — and besides the meeting itself, I’ll enjoy wandering the offices of a wealthy wealth manager and admiring the expensive art hanging on the walls.

“We view the AGM as a critical way to update you on the company’s progress and outlook for the year ahead,” BlackRock said in its letter.

Portfolio managers, it added, would be on hand to answer questions. Yippee.

Then the fun started. I emailed BlackRock as requested to let them know I would be attending and put the date in my calendar.

The response was quick – my name would be put on the guest list.

Still, there was a big ‘but’. While I could attend, I would not be able to vote in person without a letter of representation from the nominee platform on which my BlackRock World Mining shares are held.

Alternatively, I may ask the nominee to designate me as a third party nominee.

I duly requested a letter of representation, but as I searched my online Isa account, I discovered that I shouldn’t have bothered to respond to BlackRock’s letter.

I could have signed up directly through the platform to attend – and vote – World Mining’s AGM.

Neat and modern. But oddly enough, the platform hadn’t alerted me to this – unlike my segregated investment account provider, who emailed me directly about voting for another mutual fund AGM (although the name was wrong: Mercantile Trus instead of Mercantile Trust).

So all rather confusing, inconvenient and frankly unpleasant.

But I’m going on Tuesday and feel like I’m part owner of an investment fund that aims to make me, fellow shareholders, and of course BlackRock, richer. As Share Your Voice argues, companies need to have a more intimate and direct relationship with shareholders.

To my credit, BlackRock used the invitation to the AGM to encourage me to sign up for the monthly mutual fund newsletter. It’s the kind of shareholder engagement that other companies should be pursuing.

Some investment platforms, notably Interactive Investor, are also moving in the right direction, slowly making it easier for clients to connect with the companies they own. But it’s all a bit haphazard. Better signage is a must.

If you are an investor who would like to be better informed about the companies in which you are a shareholder – including the right to vote and participate in AGMs – ask your platform provider what they are doing to help you.

You will probably find that the answer is ‘not enough’.

Finally, if you would like to sign Share Your Voice’s petition demanding that all shareholders be given a vote, you can do so on the website: petitie.parliament.uk/petitions/636051.

For the record, I signed it.

How a cheap cover can be full of precious holes

With home and auto insurance premiums continuing to climb, a word of warning to those seeking cheaper coverage on renewal. When shopping around, be wary of “essentials” policies designed specifically to attract cost-conscious customers.

While these policies may suit some, they don’t include several things you would normally take for granted – for example car cover: windshield cover, motor vehicle legal assistance and the provision of a temporary car in the event of an accident.

So be sure to check what new coverage includes and excludes before signing on the dotted line.

If you have recently purchased a discounted policy and find that the cover is riddled with holes, please email me at: jef. prestridge@mailonsunday.co.uk.

Where history was made… and a future could be born

Barclays Bank continues to tear down its branch network. A few days ago, it announced that another 15 branches would be cut in the coming months, in addition to the 58 already on death row this year.

Since 2015, Barclays has closed nearly 1,000 branches, more than any other major bank. And with all the banks looking to do away with a majority of their branches in favor of shared high street banking hubs, many more closures are on the way.

I trust that by cutting its branch network to the bone, Barclays will not close its branch in Enfield Town, North London.

The branch, housed in a beautiful heritage building, was home to the world’s first ATM. Installed nearly 56 years ago, local comedian Reg Varney (remember the sitcom On The Buses?) was the first user.

Historic England has just recognized the building’s significance by adding it to its National Heritage List. A blue plaque now hangs next to the ATM recognizing its place in banking history.

Speaking to Enfield Dispatch newspaper last week, Historic England said: ‘It is extraordinary to think how much has changed since 1967 when it comes to day-to-day banking. While our use of cash has declined in recent years as contactless technology dominates, it still remains a lifeline for many, and we are pleased that this building is being recognized for its contribution to that story of evolution.”

With Enfield currently having many bank branches and ATMs – all major banks are present in the town – it won’t be long before the axes start swinging.

Perhaps a fitting tribute to the role the Barclays branch played in banking history would be for it to be transformed into a banking center. A branch that serves the ENTIRE community – complete with an ATM and a snazzy blue plaque.