Voting policy

As a large, active investor and long-term shareholder, Fidelity understands its responsibility to vote on behalf of its customers at company meetings.

It is FIL’s policy to submit voting instructions for General Meetings, although usually we do not vote where the loss of liquidity as a result of attendant share blocking is deemed to outweigh the expected benefits to be gained from exercising the votes.

We have a set of proxy voting guidelines which generally direct our voting behaviour although we do also take account of the particular circumstances at the company concerned, and of prevailing local market best practices. Our voting guidelines are reviewed on a regular basis.

Subject to these guidelines we usually vote in favour of company proposals reflecting our broadly supportive investment philosophy, although this does not preclude us from voting against management on specific occasions.

In instances where we vote against a board's recommendation we seek to ensure that management understand the reasons for our opposition and whilst it is not our usual policy to attend General Meetings we will on occasion vote in person and make a statement explaining our position. Exceptionally, we may also decide to abstain where we have insufficient information or where we wish to give a cautionary message to a company.

We encourage boards to consult with shareholders in advance rather than risk putting forward resolutions at General Meetings which may be voted down. In our view confrontation with companies at General Meetings represents a failure of corporate governance.

We oppose anti-takeover proposals as well as any moves which adversely affect the voting rights of existing shareholders. We generally oppose the transfer of authority from shareholders to directors and we do not favour shares with restricted or differential voting rights. We will also generally oppose unusual or excessive increases in authorised but unissued share capital, particularly in respect of proposed increases for companies in jurisdictions without assured preemptive rights.