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The Well Money Clinic has today launched our “Hitting the Governance Spot” campaign for responsible share ownership to be practiced by investment companies.

If you have downloaded our draft template letter to send out letters to investment companies or pension schemes that you deal with, thank you and congratulations on taking the first steps towards greater control of your investments.

We wish you the best of luck.

Let us know how you get on by posting a reply below:

PRESS RELEASE - Hitting the Governance Spot

PRESS RELEASE

08 October 2009

Major UK Fund Management Groups Fail to hit the Governance Spot, says Well Money Clinic founder Robin Keyte

Well Money Clinic, a new financial website, has launched a survey that shows that 2/3 of fund managers surveyed are unable to demonstrate that they are Responsible Investors.

When asked for the name of the person whose job it was to deal with responsible share ownership, half of the 12 fund managers surveyed said that no one was dealing with that job. Even of the positive respondents, 2 were unable to explain how responsible share ownership was practised, with one CSR team head saying that they did not understand the concept of ‘engaging with the board of the PLCs they invest in.’

In response to the complacency of fund managers who fail to carry out any shareholder engagement in respect of the shares held in their funds, Well Money Clinic has launched the G Spot campaign. Consumers can and should challenge the providers of any pensions or investments they use on the substantial economic risks they are taking with their investments. They can download a template letter from www.wellmoneyclinic.com and send their providers the message that they want Responsible Share Ownership.

Dr Robin Keyte, Chartered Financial Planner and Well Money Clinic founder said: “The research shows most fund managers and product providers are effectively sleeping on the job, and the public are completely unaware of it. It is only consumer power that can put this right. Investors should write to their product provides and tell them they want Responsible Share Ownership -- they can do this through the G Spot campaign. “

-ENDS-

Robin's Round-Up of Financial Data for October 2009

Redemption yields on short-dated gilts redeeming 2009 and 2010 remain low, implying interest rates will stay low over the next 12 months. Thereafter interest rates may start rising and continue to rise quite rapidly thereafter. The inference is the need to curb inflationary pressures from a recovering economy. Over the next 12 months or so we may therefore see an upturn in the share market, followed by an increase in interest rates and inflation, and the bottoming out of the residential property market. RPI is less negative at –1.30% and CPI has reduced to 1.60%. Redemption yields on long dated gilts have risen a little to 3.95%, but remain low due to quantitative easing and final salary scheme closures which is bad news for potential annuitants. We think long dated gilt yields may pick up over the next few years as HM Government increases gilt issuance to pay for the economic stimulus package, but future final salary scheme closures may temper that. Fund manager house views currently favour Overseas Fixed interest, European, American & Pacific (ex Japan) shares. The notable change being UK is now out of favour and Europe in favour.

Bank of England base rate of interest							0.50% pa
Short dated gilts (redemption yields)		4.45% Treasury Stock 2009 redeeming 07-12-2009					0.39% pa
		6.25% Treasury Stock 2010 redeeming 25-11-2010					0.73% pa
		3.25% Treasury Gilt 2011 redeeming 07-12-2011					1.45% pa
		9.00% Treasury Stock 2012 redeeming 06-08-2012					1.91% pa
Long dated gilts (red yields)		5.00% Treasury Stock 2025 redeeming 07-03-2025					3.95% pa
London Inter-Bank Offered Rate		LIBOR 1 WEEK					0.48% pa
		LIBOR 1 MONTH					0.47% pa
		LIBOR 3 MONTHS					0.45% pa
		LIBOR 6 MONTHS					0.45% pa
		LIBOR 12 MONTHS					0.72% pa
Consumer Price Inflation (CPI)							1.60% pa
Retail Prices Index (RPI)							-1.30% pa
National Savings & Investments		3 Yr Index-Linked Savings Certs offering RPI +					1.00% pa
		5 Yr Index-Linked Savings Certs offering RPI +					1.00% pa
Exchange Rates		£1.00 buys:		€1.10			$1.61
Fund Managers – Current House Views on Different Asset Classes
Asset Class	Positive	Slightly Positive	Neutral		Slightly Negative	Negative		Total Views Offered
Cash			1			1		2
Property		1	1		1	1		4
UK Fixed Interest	1				1	2		4
Overseas Fixed Interest	2				1			3
UK shares	1		1			2		4
European shares	2		1			1		4
American shares	2		1			1		4
Japanese shares		1	2			1		4
Pacific (ex Japan) shares	2	1			1			4

Data gathered on 1 October 2009. All figures given to 2 decimal places. Participating fund managers: UBS, Threadneedle, Canada Life, F&C. DISCLAIMER Please note, whilst every effort has been made to ensure the information contained in this document is correct, sometimes the information given to us by third parties is inaccurate. We cannot therefore be held responsible for the accuracy of this information and it should not be relied upon for making any decisions.