What to do if you are a trade unionist with a pension manager that attacks you?

Check out another great post by  Tom P

"Ahh.... Fidelity, the lure of right-wing British politics is just too strong for you isn't it?

I've blogged previously about the latest Fidelity link to the Tories - their involvement with the Leaders Group. According to the Conservative Party's own website this is the "premier supporter group" for the Tories, with an annual membership of £50,000.

As if you were in any doubt about which party Fidelity were rooting for in the General Election, the Q1 2015 disclosure of which "major donors" attended Leaders Group meals in the first quarter shows that both Barry Bateman and Simon Haslam represented Fidelity (FIL Holdings in the list). It isn't clear if the were both at one meeting, or if more than one was attended. As well as being a board member of FIL, Simon Haslam is of course also chair of Colt, where Fidelity is the major investor.

Of course the Conservative Party has embarked on a major assault on trade unions since the election, something that was trailed in their manifesto. If you are a trade unionist who is a pension fund trustee or otherwise has some involvement in this area you might want to choose asset managers who don't fund attacks on you".

How our pensions are used to fund attacks on workers.

"Fidelity and the "premier supporter group of the Conservative Party"

Check out another post by Tom P on a great British rip off. 

"Ahh.... Fidelity, the lure of right-wing British politics is just too strong for you isn't it?

I've blogged previously about the latest Fidelity link to the Tories - their involvement with the Leaders Group. According to the Conservative Party's own website this is the "premier supporter group" for the Tories, with an annual membership of £50,000.

As if you were in any doubt about which party Fidelity were rooting for in the General Election, the Q1 2015 disclosure of which "major donors" attended Leaders Group meals in the first quarter shows that both Barry Bateman and Simon Haslam represented Fidelity (FIL Holdings in the list). It isn't clear if the were both at one meeting, or if more than one was attended. As well as being a board member of FIL, Simon Haslam is of course also chair of Colt, where Fidelity is the major investor.

Of course the Conservative Party has embarked on a major assault on trade unions since the election, something that was trailed in their manifesto. If you are a trade unionist who is a pension fund trustee or otherwise has some involvement in this area you might want to choose asset managers who don't fund attacks on you".

Fidelity pays £50,000 to help Tories cut tax credits for children & increase tax breaks for millionaires

Check this post by financial blogger Tom Powdrill and look for "Fidelity"in my blog archive. See what is being done with profits from managing our money. If your pension scheme has any links with Fidelity ask them to think again.

"Another Fidelity - Conservative Party link

I've blogged a lot previously about the many links that exist between the asset manager Fidelity and the Conservative Party. I've just discovered a new one that provides a bit more insight into how significant the relationship is.

The Leader's Group is one of the Tories' donor clubs. In fact, according to their own blurb, this is the "premier" supporters group:

Annual membership: £50,000 Chairman: Howard Leigh

The Leader’s Group is the premier supporter Group of the Conservative Party. Members are invited to join David Cameron and other senior figures from the Conservative Party at dinners, post-PMQ lunches, drinks receptions, election result events and important campaign launches.

It's not cheap either, at £50,000 for an annual membership. Helpfully the Tories provide some data on who meets who in this club, and look who turns up in their disclosure for Q4 2013:

FIL Holdings (UK) Ltd (represented by Barry Bateman, Director )

I had vaguely heard of Barry Batemen so I had a google around, and it turns out he's the vice-chairman of the UK business. This is a very senior position in the firm.

So in addition to funding the Conservative Party, employing a Conservative MP, sponsoring meetings of the Conservative Party's business liaison organisation and voting in favour of PLCs making political donations to the Conservative Party, Fidelity had one of its most senior UK people at an event organised by the Conservative Party's "premier supporter group".

Fidelity uses profits from your pension to fund the Tories and put you out of a job?

Check out Tom P post "Fidelity, the Tory-friendly fund manager" 

Just think about it. The multi millionaire owners of Fidelity uses profits from managing Council pension funds to promote the Tories - who want to sack and/or destroy the pay and conditions of those Council workers - who pay into the pension scheme in the first place.  What on earth is going on?

"As the latest info from the Electoral Commission reveals, Fidelity is still funding the Tories. £25,000 donated in November took their total for 2014 up to £120,000.

They are also still paying Tory MP Sir John Stanley for advice on "business opportunities and risks" at the rate of £1,800 a month (so around £20K a year). As I've noted before his constituency is where Fidelity is based, so will be interesting to see if they continue this relationship with Sir John's successor as he stands down at this election. It's a very safe seat so will return another Tory.

For those new to this story, it's worth noting that Fidelity have also -

Voted in favour of political donations to the Tories by PLCs in which they are a shareholder

Sponsored meetings of the Tory business liaison group the Enterprise Forum

Donated £50,000 to the No campaign in the AV referendum

So, if you don't want to fund the Tories by accident you might want to check out if you have any savings managed by them and see if you can switch. I shifted our family savings away from Fidelity several years ago because of this. I continue to try and make non-Tories, including pension fund trustees, aware of this link between Fidelity and the Tories. It's up to individuals to decide if they are happy with it, or if they think it constitutes any kind of conflict, but they should at least be aware of it.

Tories, Fidelity & your savings policy being used to fund them.

A little late but more on Tory "fund" manager Fidelity doing what it does best - funding Tories! - from Tom P at Labour and Capital.

Fidelity are (or were) the single biggest corporate funder of the Conservative Party. In the last 4 years they have given them £400,000.

I understand that they now have lots of competition for this title from various other Tory financial sponsors.  See chart above about the rise in funding by the financial sector.

Tom P "I was Googling around on Fidelity and the Tories last night and came across this story from 2007. What caught my eye was this comment -

“We do not comment on our political donations. We do not endorse political candidates and generally we take a non-partisan approach with politics.”

I still think the "non-partisan" claim is hilarious, frankly, but the bit that struck me was that line about not endorsing political candidates. As far as I am aware this is true. But Fidelity does have a Conservative MP it employs as a consultant who seems to be paid pretty much every month.

Sir John Stanley's register of interests is here. Here are the Fidelity contributions:

2. Remunerated employment, office, profession, etc.

Consultant on financial services to FIL Investment Management Ltd (formerly known as Fidelity Investment Management Ltd), Oakhill House, Hildenborough, Kent TN11 9DZ.

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 7 hrs. (Registered 23 May 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 8 hrs. (Registered 27 June 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 6 hrs. (Registered 20 July 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 5 hrs. (Registered 21 August 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 6 hrs. (Registered 2 October 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 5 hrs. (Registered 29 October 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 5 hrs. (Registered 21 November 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 7 hrs. (Registered 24 December 2012)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 6 hrs. (Registered 29 January 2013)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 7 hrs. (Registered 22 February 2013)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 8 hrs. (Registered 25 March 2013)

£1,800 received for attending meetings as necessary and advising on business opportunities and risks. Hours: 6 hrs. (Registered 16 April 2013)

(Note Fidelity now appears as 'FIL' rather than 'Fidelity' both here or when making donations).

Check out more Tory/Fidelity connections by Tom here!

Hat tip chart If you do not want any of the profits from managing your pension or investment policy to be given to David Cameron or his mates then please check that they are not run in any way by Fidelity. If they are then let your fund administrators or trustees know your views.

Fidelity - the Tory "Fund" managers

Hat tip to Labour and Capital blogger Tom P for highlighting how fund managers Fidelity are one of the biggest corporate donors to the Conservative Party. I wonder how many Fidelity policy holders or members of the local government pension scheme (Fidelity Worldwide Investment runs £3 billion of LGPS money) realise that profits from managing their pensions is going to fund David Cameron and George Osbourne?

Check out Tom here at "Another £25,000 donated in April" and "On the trail of a big Tory donor"  (see below)

"Readers of long standing may know that I've blogged a fair bit in the past about the financial and political relationship between asset manager Fidelity and the Conservative Party. On the Peter Cruddas scale, Fidelity are a "Premier League" donor. For example, they gave the Tories £300,000 in the year running up to the 2010 general election. Last year they gave them £100,000. They also employ the MP Srir John Stanley as a consultant. (They also chucked £50,000 at the No2AV campaign in 2011).

Oddly, over the years the way that Fidelity donates to the Tories seems to have changed. So up to 2008 they were listed as "Fidelity Investment Management" with the company reg number 2349713 or sometimes 02349713.

But from 2008 to the start of 2012 they started appearing as "FIL Investment Management", again using the same company reg number. Then, for the remainder of 2012 (three donations of £25,000), they appeared as "FIL Holdings", using the company registration number 6737476.

Since the start of 2013, however, there have been no donations have been reported using any of the previously used names or company registration numbers. Maybe they've stopped, or maybe they are reporting under a different name and company registration number? Or maybe they just didn't donate in Q1? Anyway, I'm keeping an eye on it".

Keep up the good work Tom. Of course, you do wonder why the very highly paid directors of Fidelity choose to give all this money to the "tax cuts for millionaires" Party? 

Search the Money

"Search the Money" is a great new website that scrutinises donations to the Conservative Party, hospitality to MPs and constituency parties. It also allows you to check if "your MP has

been doing some private work on the side".

While I think it is corrupt and corrupting that billionaires such as Lord Ashcroft are able to pour millions of pounds to support Tory candidates.  At least it is his own money.

Public companies that donate shareholder money to the Tories are simply beyond the pale.  What possible reason can there be for doing this apart from the desire to buy political influence and power?

I also hope that private companies that donate to the Tories are held to account. Companies such as Fund Mangers Fidelity, who are the biggest company donors to the Tories yet they fail to declare it to its clients and policy holders. Many local government pension funds employ Fidelity as a fund manager. UNISON members would be furious if they realised that profits from managing their pensions is being used to fund the Tories.     

The site will also keep an eye on the private earnings of Tory MPs and possible conflicts of influence. I don't think it is necessarily always wrong that MPs have private earning but how on earth can Tory MP Simon Reevell justify topping up his obvious pittance as a MP of only £65k with a whooping £165k as a lawyer? How can he be a full time MP? 

I completely refuse to accept any comparison with the funding of the Labour Party by trade unions.  Trade unions donations are individual affiliations freely made by trade union members who can chose whether or not to pay the levy fee. If my pension fund employed Fidelity in most schemes I would have little or no choice on the matter. 

Picture is by Hogarth "Humours of an Election".

Hat tip to Mlle Witherington 

Fidelity: the big bad wolf?

I haven't had a pop at Fidelity Fund managers for a while. So being Christmas and all that...I thought it was about time I had a go at one of the biggest single political donors to the Conservative Party.

Now, Fidelity is a private company and if they want to give money to the Tories then fair enough. But what isn’t on is that they don’t disclose this to the clients. Not only do they not disclose it but they vote in other Companies AGM’s to give even more money to the Tories. Again without properly disclosing it. They also give money to pro-tory policy organisations, again, without properly disclosing it. Anyway, this is an email I sent this evening to the Financial Reporting Council (FRC).
I’ll let you know what happens.

“Dear Baroness Hogg

I wish to bring to the attention of the Financial Reporting Council my concern that fund managers Fidelity (FIL) don’t disclose their political donations to the Conservative Party as a conflict of interest under the “conflicts section” of their stewardship code statement here: https://www.fidelity.co.uk/investor/about/uk-stewardship-code/uk-stewardship-code.page?smid=geiz5krb

They make significant political donations to one UK political party (£400,000 to the Conservative Party in the last three years) yet also get to vote on resolutions seeking authority to make political donations, and in practice they have voted in favour of at least one company (Caledonia Investments) seeking to make donations to the same party. They also funded the 2011 anti-AV campaign, despite the fact that they are employed by some funds where the beneficiaries may have a different view (i.e. a majority of voters in Camden were pro AV in the referendum yet the Camden Council LGPS fund employs FIL).

I believe that Fidelity should at least disclose these donations, and the possible conflict with client views/interests, in its Stewardship Code statement. I would be grateful of your view of this matter. Yours sincerely"

Auto-enrolled into funding the Tories?

There is a welcome "revolution" in pensions about to hit Britain pretty soon.  In 2012 there will be at long last be a national trust based low cost pension scheme aimed at low to moderate earners and their employers (NEST). 

This is a massive advance that could eventually even help eliminate pensioner poverty in this country. 

But there could be a problem.  Trust will be a huge issue to ensure that this scheme is a success.    NEST is currently advertising for fund managers to bid to run these funds.

Now, there is a certain major international fund manager called Fidelity who may be considering whether or not to tender for one of NEST's funds.

Not that you would evcr know from their literature but Fidelity is also one of the biggest financial supporters of the Conservative Party.  Check out here, here and here. They have poured hundreds of thousands of pounds into the Tories in recent years (£495k in 2004-2008).  This is money made from small savers and pension policy holders who would not a clue that the profits from managing their money were being used to fund the Tories.

If Fidelity was chosen as a NEST fund manager then we could find that workers are being auto enrolled by law into paying policy fees to a company that has been a major paymaster of the Conservative Party. 

This is plain wrong.

Fidelity Fund Managers Fund Tories Armoury (with union member’s money)

Tom P the mild mannered scourge of Tory funding maestros Fidelity has found out that the company has donated another £125,000 to their puppets in the Conservative Party.

This is just plain wrong on a number of levels. Not least did Fidelity disclose being a (or the?) major corporate funding of the Conservative Party when they won the investment mandate for Tory controlled North York’s LGPS fund last year? Fidelity are employed as fund managers by a number of Council pension funds. The profits from Unison members pensions are being used to pour money into the Party pockets of Cameron and Osborne?

Tom also exposes the public PLC Investment Trust Cameron (sorry Caledonia) that is a long standing Tory funder which is now part owned by the state (via our nationalised banks) who last year funded individual Tory CLP’s with our money. Local Tory parties in Ealing Central and Acton got £3,000 while Milton Keynes, Sutton and Cheam got £5,000.

Great picture from Truth, Reason and Liberty

Tory Funder Fidelity to Lose Pension Contract

Good news – yesterday I spoke to, lets just say, a very senior councillor in a British local authority, who told me that "no matter what", their pension fund will not be reappointing “you know who” as their fund managers.

This is because the councillors, who appointed Fidelity in the first place felt deceived by the company, who did not mention their political partisanship when they gave them their presentation.

Also, they do not think it appropriate for fund managers to support any political party. Fidelity has given £415,000 to the tories in recent years.

Tom P also reports that he has had a few “interesting conversations” with people in the investment business, that they share his concerns about the wisdom of Fidelity’s political postulating.

This is his first “scalp” and I have no doubt there will be more.

Time to Say Goodbye to Tory Fund Managers Fidelity?

Or is it belated good riddance to bad rubbish? Tom P of Capital & Labour (and his Mrs) has finally had enough of active Conservative Party supporters,Fidelity Investment. Fidelity has donated £435, 500 (£115,000 in 2007 alone) to the Tories in recent years without disclosing the information to their investors.

Tom and his family have had a long term saving plan with Fidelity for many years. Once they found out that the company was giving the Tories huge amounts of money they were very concerned. They tried to contact Fidelity about their over why Fidelity were giving this money to the Tories but felt they were “fobbed off”. So they are leaving Fidelity.

Personally, I think anyone who does not support the Conservative Party should think about doing something similar. This includes pension fund trustees. I’ll hopefully be posting further on this in the near future.

Pic & video of top artists Sarah Brightman and Andrea Bocelli (not Tom & Mrs!)

Fidelity: “links” to Darfur and “disgusted, Tonbridge Wells”

Quick update on the work of super investment sleuth, Tom P and his continuing investigation into investment Fund manager, Fidelity, who are exposed as major financial contributors to the Conservative Party. In recent years they have donated £415, 500 to the Tories despite not declaring this to potential customers such as Council pension funds.

Tom has also pointed out that during the recent Parliamentary debate on political party funding, Fidelity’s sponsorship of the Tories was mentioned and it was pointed out by Lib Dem MP David Heath, that Fidelity “deals with those who are creating the circumstances of genocide in Darfur” (Hansard). Check out “Fidelity out of Sudan”

Not only this, Tom finds out that Fidelity directly employs former minister, Tory MP for Tunbridge and Malling, (and former PPS to Margaret Thatcher) Sir John Stanley as a “consultant”. He also appears to be paid as a director of a Fidelity investment trust. Jobs for the boys? It is a little unclear what he advises Fidelity upon. Is it on political donations?

Finally, Tom has also ferreted out Fidelity support of Pro-Tory business pressure group called The Enterprise Forum . They sponsored last year a breakfast meeting addressed by Philip Hammond MP - Shadow Secretary of State for Work & Pensions.

“Why should my pension scheme fund the Tories?"

Good question. Ever since it came out in Labour & Capital” blog, that the fund managers Fidelity have recently given the Conservative Party £415,000; I have been contacted by furious UNISON members whose pension fund employ Fidelity.

Local Government Pension scheme members currently have little or no influence over who is employed to manage their pension contributions (their “deferred pay”). Now they find that their pension money is being used to enrich the Tories without them even being made aware.

Many UNISON members also work for Conservative controlled Councils and are obviously concerned that these Councils are paying huge amounts of money to a company which is a significant Conservative Party funder without any disclosure or consultation. LGPS Pension fund managers usually charge annual fees of hundred of thousands of pounds to manage Council funds.

I know that a number of Labour Party councillors are also livid that they have employed such a company without being aware of this potential conflict of interest.

The author of Labour & Capital, Tom P and his wife, has a ISA with Fidelity and has been trying for sometime to get proper response from Fidelity about why they pay the Tories, will they continue to do so and why don’t they disclose their political bias? He has been pretty much been fobbed off. See the latest rather pointless response.

Following the complaints I have received from UNISON members, I have (finally) drafted a letter to Fidelity which I will consult beforehand with the London and the National UNISON Capital Stewardship forums (I currently chair both).

I hope that the National Association of Pension Funds (NAPF) will also get their finger out and give some definitive advice on donations to political Parties. At the moment their advice is only that they would not normally support such donations. What on earth does that mean in practice? No doubt at this rate we will have to wait for some typically British financial scandal to occur before “the powers to be” get their act together and ban this frankly odious practice.

InFidelity comes over all coy while “bonkers” Caledonia joins Tory investors club

Labour & Capital blogger, Tom P, has had a reply from Fidelity Investments to his letter to them about their donations to the Tories (£95k this year alone). Tom and his wife pay into a Fidelity ISA towards paying off their mortgage and are very unhappy that they are indirectly contributing to Conservative party funds.

Click on the link to read about the frankly empty response that Fidelity gave to his letter. Keep up the pressure Tom!

It was also interesting to note that Tom also reports that Caledonia Investors has given the Tories £60k. Caledonia still has very strong links with their founders, the old money Scottish Tory lairds, the Cayzers. Read the “Scotland on Sunday” account about the “stark raving bonkers” family feud that the almost liquidated the trust in 2003. It makes UNISON conferences seem like “a walk in the park”.

While you are at it check out Fidelity Out of Sudan.

Letter about Tory political infidelities

My apologies for not posting this link sooner - an excellent post from Labour & Capital about the investment fund managers Fidelity, who unlike all other major British managers are significant financial contributors to the Conservative Party. Over £320,000 in the last three years.

Tom P (the author) and his wife, have an ISA investment account with them. He has written this letter asking why they are donating money to the Tories, are they planning future contributions and do they disclose these donations when they bid for business in Conservative controlled Council pension fund authorities?

I would argue that they should disclose this fact before bidding for business for any local authority not just ones with a Tory majority? A Council pension scheme panel will probably still have Tory members present even if they do not control the authority. I am sure that they will not want to be put in a potentially compromising position. Also, vulnerable without any such declaration of interest by Fidelity would be any Council officers present or their professional advisors if they themselves are Conservative Party members or supporters? Actually I’m sure this information will be gratefully received in the Labour heartlands.

Anyone who has an investment or personal pension plan with Fidelity should consider sending the same letter. Also check to see if your insurance or pension scheme employ Fidelity as their fund managers. If so, you should consider writing to your plan administrators or trustees asking them about the wisdom of employing such partisan managers.

Tom and wife point out that if Fidelity continues to give money to the Tories they will move their savings. However, usual health warnings about taking appropriate advice before you actually change any such investments apply.

A letter to Fidelity

The letter below has gone in the post this morning. My wife and I have been with Fidelity for about 6 years now. We have an ISA we set up to help pay off our mortgage, so we were intending to stick with them for the long run. We are therefore both really p***ed off that we may have to go through the hassle of changing fund manager because the one we chose prioritises making partisan political donations over the concerns of its customers. I hope they reply saying they are going to halt the donations. But if they won't stop doing it we feel we have no option but to move our savings elsewhere.

Fidelity International,
Oakhill House,
130 Tonbridge Road,
Hildenborough,
Tonbridge,
Kent TN11 9DZ

My account Number: XXX My Adviser: XXXI

I was concerned to learn from the Electoral Commission website that Fidelity International has donated £95,000 to the Conservative Party so far during 2007. I am not a Conservative Party supporter, but I do not believe that a fund management business like Fidelity should make donations to any political party.

As you are no doubt aware most institutional investors will vote against resolutions at companies’ AGMs where authority is sought to make party political donations. Indeed party political donations are rare amongst listed companies these days.

It is therefore somewhat surprising to see an institutional investor make such donations itself.

As a long-standing Fidelity customer I am very concerned by these donations. I would therefore be grateful if you could answer the follow questions.

1. What is the rationale for making donations to the Conservative Party?

2. Does Fidelity intend to make similar party political donations in future?

3. Does Fidelity disclose these donations when this is a potential conflict of interest (ie when presenting to Conservative-controlled local authority pension funds)?

I also wish to make clear that if Fidelity does intend to continue making partisan political donations I am likely to move my family’s savings to another fund manager.

Yours sincerely

Just Say No to Fidelity – Pension money used to fund Tories

Just when you feel that the British Financial Services industry cannot sink any lower in public esteem, we learn that leading investment manager Fidelity is giving the Conservative Party vast amounts of money. Hat trick thingy to Tom at “Capital and Labour”.

In the last 3 years they have made a series of donations worth £320, 000. This is just absolutely disgraceful. Fidelity is the fund manager for a number of Local Authority Pension funds. From the top of my head I think this includes Bromley, Haringey, Norfolk, Ealing, Greenwich and Buckingham County Council. So the profits from trade union LGPS pensioners are being used to subsidise the Conservative Party!

No fund managers should support political parties, it is fundamentally wrong. There is a terrible conflict of interest in Conservative run Councils such as Bromley. How can they be seen to properly employ a fund manager such as Fidelity to run their pension scheme when that fund manager donates huge amounts of money to their political party? I assume that National Conservative party funds were used to pay towards the cost of last year’s Parliament by-election in Bromley? This is potentially corrupt and corrupting.

I can’t find any mention of this financial support for the Tories on the Fidelity website or literature (no doubt it will be hidden somewhere). Their governance statement makes no mention of Political Party funding. If there is nothing wrong with this why don’t they publicise the fact?

The National Association of Pension Funds (NAPF) “Towards Better Corporate Governance” policy which despite being a bit wishy- washy (no comment) makes it clear that they would not normally support donations to Politician Parties. I assume that Fidelity is a business member. There is obviously now a reputational risk of investing in or employing Fidelity.

Pension funds and individual investors (they may also manage your private pension, life assurance or PEP/ISA/unit trust/investment trust) should consider pulling out of Fidelity and transferring funds to other providers if they continue to support the Tories. It is just plain wrong. The arrogance of these people is beyond belief. Write to the administrators of your investment company to see if they use Fidelity. I will be contacting my fellow UNISON member nominated pension trustees and representatives to see what we can do about this.

This is yet another reason why there needs to be real reform of the Local Government Pension Scheme governance and why trained and supported staffside representatives on pension investment panels are desperately needed.

While we are at it here is a link to the American website “Fidelity out of Sudan” which makes some very damaging allegations against Fidelity.