For Immediate Release: Wednesday 10 January 2001

INVESTMENT FUND MANAGERS TO PUBLICISE THEIR VOTING POLICY - AUTIF DEVELOPS CORPORATE GOVERNANCE CODE OF GOOD PRACTICE

The Association of Unit Trusts and Investment Funds (AUTIF) has introduced a voluntary Code of Good Practice for investment fund managers, in their capacity as institutional shareholders. The Code recommends that managers should, wherever possible, maintain a dialogue with companies, vote actively and inform their own investors about their policy on voting and other corporate governance matters.

AUTIF asked independent consultants, The Strategic Partnership (London) Limited (SPLL), to help with the development of the Code. The SPLL survey showed that over 60% of investment fund managers already have a clear voting policy, but that only about 25% currently communicate details of this policy to their investors. AUTIF believes it is important to raise awareness of the issues surrounding corporate governance still further. Therefore, the Code recommends that managers advise investors of their policy in their annual reports. The Code covers ten key principles, together with guidance notes and advice as to what the manager may wish to include in reports to investors.

Alan Ainsworth, AUTIF Chairman, commented:

"AUTIF believes that corporate governance is a key issue for the investment funds industry. Fund managers act as stewards of the money of others and it is important that investors know what policy the fund manager will implement in its role as a shareholder on their behalf."

Keith Niven, Chairman of AUTIF's Investment Committee, added:

"We believe that AUTIF's Code will raise awareness of corporate governance issues and help to establish standards of good practice across the industry. The emphasis on disclosure should also encourage better information for investors."

Although well-established corporate governance codes of conduct have been produced by the ABI and NAPF, over 70% of AUTIF members are not covered by these codes. The AUTIF Code has been designed to complement these existing codes.

For further information please contact:

Philip Warland, Director General, AUTIF - +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF - +44 (0)20 7831 0898
Alison Michell, Senior Policy Adviser, AUTIF - +44 (0)20 7831 0898
Peter Smith, Chief Executive, SPLL - +44 (0)20 7290 7772

Notes to Editors:

• A copy of the Code of Good Practice is available on request to AUTIF.
  
  
• The Code was drawn up by AUTIF’s Investment Committee, under the Chairmanship of Keith Niven, Chairman of Schroder Unit Trusts Limited.
  
  
• The Chief Executive of The Strategic Partnership (London) Limited (SPLL) is Peter Smith.
  
  
• Investors in unit trusts or open ended investment companies remain the beneficial owners of their units/shares, but legal ownership and voting rights in the underlying stocks rest with the trustee and fund manager, or their oeic equivalents.