Corporate Governance

Corporate Governance

At Fidelity we believe we have a duty to satisfy ourselves that the companies we invest in are managed legally and responsibly. This responsibility is part of share ownership and is a key element of our commitment always to act in the best interests of our clients.

As an active investor and long-term shareholder, Fidelity has an unparalleled amount of contact with companies in which we invest, both through regular meetings and informal dialogue with senior management.

Our 'Principles of Ownership' document details our approach towards the stewardship of our investments as well as our views on remuneration policy, voting, take-over bids, returns to investors and socially responsible investment. More information can be found here.

Socially Responsible Investing

FIL believes that high standards of corporate social responsibility (CSR) will generally make good business sense and have the potential to protect and enhance investment returns.

Consequently, our investment process takes social, environmental and ethical issues into account when, in our view, these have a material impact on either investment risk or return. Social, environmental and ethical best practice should be encouraged provided it enhances long-term financial return.

We do not screen out companies from our investment universe purely on the grounds of poor social, environmental or ethical performance but rather we adopt a positive engagement approach whereby we discuss these issues with the management of the companies in which we invest on behalf of our clients.

We use the information gathered during these meetings both to inform our investment decisions and also to encourage company management to improve procedures and attitudes. We strongly believe that this is the most effective way to improve the attitude of business towards CSR.

FIL’s CSR analyst has overall charge for analysing the environmental, social and ethical performance of the companies we invest in. The CSR analyst works with FIL’s equity analysts and portfolio managers to highlight any material risks or potential business opportunities so that they may be properly considered within our investment process.

Fidelity’s role as a Corporate Citizen

Since its establishment in the in 1979, Fidelity International has maintained a tradition of community involvement and charitable giving. We focus our support on the locations where Fidelity has offices – Tonbridge & Hildenborough, Reigate and in the City of .

As a company that prides itself on innovation, quality and continuous improvement, Fidelity seeks out opportunities in the community that focus on education and development, particularly for the young of today. When working with local charities and community groups we support organisations who can demonstrate strong standards of business management and who are focussed on long-term sustainability.

In addition Fidelity supports local charities and their fundraising events and wherever possible encourage our staff to become involved in these activities. Fidelity also encourages the involvement of staff through volunteering, charity days and our grant matching scheme.