• Fidelity Investments provides a variety of financial services and products including mutual fund management, long-term investments, offshore investments and insurance product funds.
• Alleged financial scandals, war profiteering, human rights violations, and environmental destruction have marred Fidelity's reputation.
• Fidelity has favored corporate management when voting on issues of social responsibility, climate change, and corporate governance, failing to promote corporate responsibility on these issues with the companies they hold.
• Use Go Green to find responsible investing options.
-- Profile Updated 07/01/2010
FMR Corp., more commonly known as Fidelity Investments, provides a variety of financial services and products including mutual fund management, long-term investments, offshore investments and insurance product funds. Based in Boston, the company manages $1.2 trillion worth of assets and employs an international workforce of approximately 29,424. FMR Corp. reported net sales of $3.8 billion in 2005.
Climate of Corporate Change Campaign
With trillions of dollars in assets, Fidelity, Vanguard, and American funds could play a vital role in encouraging corporate responsibility on climate change and protecting the assets of their investors. Over the past year, tens of thousands of investors have expressed concern that these funds are failing to take action on climate change. Now, they need to hear from thousands more. Tell them it's time to wake up and take action!
Campaign ExxonMobil is working to improve ExxonMobil’s corporate behavior and response to global climate change by using the power of shareholders to make an impact. The campaign focuses heavily on Fidelity and Vanguard mutual fund investors, as both companies list ExxonMobil as a major holding. Mutual fund investors are encouraged to ask Fidelity and Vanguard management to vote in favor of climate change resolutions brought before shareholders.
There are no known affiliates associated with Fidelity.
Boston, MA 02109 USA
Fidelity, along with Vanguard and JP Morgan, has been criticized by human rights groups, politicians and the public for continuing to invest in PetroChina. PetroChina is one the largest players in the Sudanese oil industry, and the proceeds from Sudan’s oil exports go overwhelmingly to fund the Sudanese army. The Sudanese army, in turn, is responsible for arming and training the Janjaweed militias which are carrying out a campaign of genocide in Darfur that has killed more than 400,000 and displaced millions more. Furthermore, because of PetroChina’s intimate relationship with the Chinese government, Sudan receives political protection and arms from China. As long as JP Morgan, Fidelity, Vanguard and other US companies continue to invest in PetroChina, their money will be used to arm and protect the perpetrators of genocide.
-- Save Darfur Coalition, 10/24/2007
Source URL: www.savedarfur.org/page/content/Divest_PressKit/
Ethics and Governance
In November of 2004 the SEC initiated an investigation of gift giving between brokerage houses and Fidelity traders. Fidelity claims to have “disciplined” 16 traders and reiterated rules regarding gifts and entertainment expenses. The SEC is still considering filing a civil lawsuit against Fidelity for accepting gifts from brokers, which potentially compromises the best interest of investors. Following an internal investigation ending in December 2006, Fidelity paid $2 million to its mutual funds as a company response to trader corruption.
-- Boston Globe, 03/23/2007
Source URL: none available
According to a 2005 year-long study by governance-research firm Corporate Library, the nation’s most prominent financial management companies voted in favor of corporate management 92 percent of the time. The same funds voted in support of shareholder resolutions only about 30 percent of the time.
Fidelity voted with management at a rate of nearly 90 percent while approximately 80 percent of Vanguard’s votes fell along management lines.
Fidelity's proxy voting guidelines fail to address policy toward shareholder resolutions on executive compensation, which typically aim to reign in pay practices. As a result, Fidelity defaults to rejecting proposals on executive pay unless they are "reasonably likely" to "maximize shareholder value."
-- Wall Street Journal, 10/03/2006
Source URL: none available
In May 2005 Amnesty International offices around the world sent letters to the top shareholders of Dow Chemical, including 100 top investors in the US such as Fidelity, Morgan Stanley, Citigroup, and Merrill Lynch. The letters asked investment institutions to demand information from Dow about liabilities associated with the Union Carbide chemical disaster in Bhopal, India.
-- Amnesty International, 05/09/2005
From 2001 to 2002, Fidelity spent a total of $376,220 in soft money political contributions, 88% of which went to Republican campaigns and committees.
-- Center for Responsive Politics, 06/09/2003
In 2003, Fidelity Investments, along with competitor Vanguard Group, spearheaded efforts to block a measure by the Securities and Exchange Commision’s that would require mutual funds to fully disclose their votes on corporate shareholder ballot issues.
-- Boston Globe, 01/15/2003
Source URL: none available
In February of 2000, protestors gathered outside Fidelity offices in 20 cities around the U.S. and voiced their opposition to Fidelity’s support of oil drilling projects in the Colombian rainforest. Activists hit the streets in a show of solidarity for the U’wa Indians in Colombia who would be forcibly displaced from their sacred lands in order to make way for Occidental Petroleum Corporation’s Samore project.
-- Rainforest Action Network, 01/31/2001
Source URL: ran.org/media_center/news_article/?uid=336
Research by the Civil Society Institute shows that a number of Fidelity’s and Vanguard’s holdings are companies that contribute to global climate change, and thereby jeopardize shareholders’ stock value. These holdings include stock in oil and gas companies such as ExxonMobil and ChevronTexaco.
-- SocialFunds.com, 09/10/2004