Why it pays to invest in the best companies

The Sunday Times Best Companies list, announced on 1st March, will recognise the best large, mid, and small companies to work for in the UK. Analysis released ahead of the publication of the list by Russell Investments reveals that the level of return is consistently higher for someone investing in a portfolio consisting of Best Companies compared with the portfolio of companies from the FTSE100.

Jonathan Austin, CEO, Best Companies comments:

ìOrganisations appearing on The Sunday Times Lists consistently outperform the FTSE100. This is not surprising because these are organisations with demonstrably good leadership and high levels of employee engagement and these factors are bound to reflect in the success of the business and the confidence of investors. It is incredibly powerful to be able to demonstrate the ROI for an organisation from investment purposes.î

John Velis, Head of Capital Markets Research at Russell Investments adds:

ìIt is interesting that the organisations from the Best Companies lists have performed so well. These are organisations that are largely representative of the diversity of the British economy, from business services to food & drink and technology. While there are a number of factors that will influence the performance of a portfolio, strong performance will often be seen in organisations that are well managed with strong leadership.î

The companies listed in this year's Sunday Times Best Companies to Work For, Best Small Companies to Work For and Best Big Companies to Work For are compared by Russell Investment who tracks how their shares have performed over the last five years in comparison to those of the FTSE100.

A list featuring featuring the same five year performance comparison is published every year and every year the Best Companies To Work For organisations have outperformed the FTSE.