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