ICI Supports EU Efforts to Improve Shareholder Rights

Washington, DC, December 16, 2004 -The Investment Company Institute this week filed comments supporting the European Union's efforts to improve shareholder rights and the ability of shareholders to vote cross border. The Institute noted that many of its members manage funds that hold voting stock in EU companies.

While strongly supporting the EU's efforts to improve shareholder rights, Mary Podesta, Senior Counsel of the ICI urged the EU to extend those rights to non-EU investors, including US mutual funds.

Specifically, the ICI recommended that the control of voting rights be "the last natural or legal person or entity who holds a securities account in `the chain.'" According to Podesta, this would permit US mutual funds and pension funds rather than global and local custodians and non-EU securities intermediaries to control the voting rights.

Podesta noted the Institute also strongly supports eliminating the practice of shareblocking in the EU as this would "represent one of the most significant advances in facilitating the ability of shareholders to exercise voting rights." Furthermore, the ICI commended the EU's effort to foster the ability of investors to vote without physically attending meetings.

US mutual fund companies manage $569 billion in funds that have a global or international focus.

This website includes a section devoted to global developments that affect funds and their shareholders.