Investors Against Genocide
Draw the line at
investing in genocide
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2009 is shaping up to be a big year for our campaign. Thanks to you there have been votes on genocide-free investing at Vanguard and Fidelity. Voting is continuing at Fidelity and will begin this fall for American funds.
Our shareholder proposal strategy is working. Press coverage of the voting is helping to educate people about the problem of investments in companies helping to fund genocide. Even more importantly, multiple millions of Americans are learning of the issue by reading their proxy ballots and voting for the proposal, despite the opposition of fund companies. The feedback is not being lost on the mutual fund companies. For example, in March TIAA-CREF announced an escalated effort to oppose genocide in Darfur and made a public commitment to divest by year-end unless target companies cease their relations with Sudan or “attempt to end genocide and ease suffering in Darfur.” This announcement by TIAA-CREF was a clear victory for genocide-free investing.
VOTING RESULTS
1) Vanguard, the largest mutual fund company, sent our shareholder proposal to all its millions of shareholders whether or not they owned the 30 funds that were able to vote on the proposal. Vanguard actively opposed the proposal and made a misleading statement of opposition, claiming that the proposal called for procedures that "duplicate" existing practices and are "substantially identical" to existing procedures. However, a careful reading of Vanguard's statement of opposition reveals that Vanguard, made no commitments to act and its holdings showed it took no steps to avoid investments in companies that help to fund genocide. Many shareholders were surely misled. Even more ordinary investors discarded their proxy materials and missed their chance to vote. Nonetheless, genocide-free investing received between 7% and 17% of the vote, notably high numbers for proxy votes on social concerns, and reflecting support from millions of shareholders.
2) For the second year in a row, Fidelity shareholders had an opportunity to vote on genocide-free investing. Fidelity again chose to actively oppose our proposal and insisted on retaining its flexibility to invest in genocide, disregarding the 20% to 31% who voted against them last year, and alienating many more customers this year. Despite Fidelity’s active opposition, affirmative votes were recorded for four funds, ranging between 18% and 25%. Nine additional funds did not reach quorum and were adjourned to meet again August 14, 2009, allowing more time to vote for the nine funds.
3) American funds shareholders will have an opportunity to vote this fall. Virtually all of American Fund customers will get materials on our proposal and some 50 million shareholders of record will have an opportunity to vote.
HOW YOU CAN HELP
Our focus now is on the major funds that have not yet been forced to confront their complicity in the Darfur genocide. Franklin Templeton and Barclays (iShares) remain heavily invested in companies funding the genocide. Please help us advance the campaign by submitting proposals for more mutual funds, especially for funds from Franklin Templeton and Barclays. To submit a shareholder proposal, SEC rules require that you’ve held the fund for over a year and have at least $2,000 invested. We’ve made the process easy and confidential. Click here for details. Becoming a volunteer costs nothing, extends the reach of the campaign, forces the companies to make the position public, and increases attention on the problem of financial firms investing in genocide. Your single submission could allow all shareholders in your fund to vote, which may amount to millions of shareholders in any one fund!
Thanks so much all you’ve done and continue to do for the cause of genocide-free investing.
The Investors Against Genocide Team
Our shareholder proposal strategy is working. Press coverage of the voting is helping to educate people about the problem of investments in companies helping to fund genocide. Even more importantly, multiple millions of Americans are learning of the issue by reading their proxy ballots and voting for the proposal, despite the opposition of fund companies. The feedback is not being lost on the mutual fund companies. For example, in March TIAA-CREF announced an escalated effort to oppose genocide in Darfur and made a public commitment to divest by year-end unless target companies cease their relations with Sudan or “attempt to end genocide and ease suffering in Darfur.” This announcement by TIAA-CREF was a clear victory for genocide-free investing.
VOTING RESULTS
1) Vanguard, the largest mutual fund company, sent our shareholder proposal to all its millions of shareholders whether or not they owned the 30 funds that were able to vote on the proposal. Vanguard actively opposed the proposal and made a misleading statement of opposition, claiming that the proposal called for procedures that "duplicate" existing practices and are "substantially identical" to existing procedures. However, a careful reading of Vanguard's statement of opposition reveals that Vanguard, made no commitments to act and its holdings showed it took no steps to avoid investments in companies that help to fund genocide. Many shareholders were surely misled. Even more ordinary investors discarded their proxy materials and missed their chance to vote. Nonetheless, genocide-free investing received between 7% and 17% of the vote, notably high numbers for proxy votes on social concerns, and reflecting support from millions of shareholders.
2) For the second year in a row, Fidelity shareholders had an opportunity to vote on genocide-free investing. Fidelity again chose to actively oppose our proposal and insisted on retaining its flexibility to invest in genocide, disregarding the 20% to 31% who voted against them last year, and alienating many more customers this year. Despite Fidelity’s active opposition, affirmative votes were recorded for four funds, ranging between 18% and 25%. Nine additional funds did not reach quorum and were adjourned to meet again August 14, 2009, allowing more time to vote for the nine funds.
3) American funds shareholders will have an opportunity to vote this fall. Virtually all of American Fund customers will get materials on our proposal and some 50 million shareholders of record will have an opportunity to vote.
HOW YOU CAN HELP
Our focus now is on the major funds that have not yet been forced to confront their complicity in the Darfur genocide. Franklin Templeton and Barclays (iShares) remain heavily invested in companies funding the genocide. Please help us advance the campaign by submitting proposals for more mutual funds, especially for funds from Franklin Templeton and Barclays. To submit a shareholder proposal, SEC rules require that you’ve held the fund for over a year and have at least $2,000 invested. We’ve made the process easy and confidential. Click here for details. Becoming a volunteer costs nothing, extends the reach of the campaign, forces the companies to make the position public, and increases attention on the problem of financial firms investing in genocide. Your single submission could allow all shareholders in your fund to vote, which may amount to millions of shareholders in any one fund!
Thanks so much all you’ve done and continue to do for the cause of genocide-free investing.
The Investors Against Genocide Team