Union pressure on fund managers

Pension fund managers are so reluctant to reveal how they vote in company meetings that trade unions are threatening to go to the fund trustees to get the information.

Despite the recurring public outcry over executive pay and other aspects of corporate governance, fund managers rarely vote against the management on such issues.

The TUC launched a survey to discover how 50 top fund managers voted in controversial issues such as the Prudential's executive pay packages and BP's environmental disclosure. Just 15 responded to the questionnaire and only six would reveal their voting record. As a result, the TUC is to send out letters to the hundreds of its members who are also trustees of pension funds, requesting that they get the information so it can be published.

The TUC said its trustee members are keen to find out how active fund managers are in the governance of their investments before they hire them. "Trustees are becoming more interested in how managers vote," said Tom Powdrill, the TUC's institutional investment officer. "Trustees want to see if they are willing to challenge management."