Fido shareholders to vote again on human-rights policy

Despite the opposition of Fidelity Investments, shareholders of 13 mutual funds it offers will have the opportunity vote on a proposal requesting that the boards of the funds adopt a policy to prevent holding investments in companies that support genocide.

Despite the opposition of Fidelity Investments, shareholders of 13 mutual funds it offers will have the opportunity vote on a proposal requesting that the boards of the funds adopt a policy to prevent holding investments in companies that support genocide.
The Boston-based firm filed proxy documents with the Securities and Exchange Commission on May 29 that include the shareholder proposal.
The voting will take place over the weeks leading up to the Fidelity’s July 15 annual shareholder meeting.
The proposal is a non-binding request from shareholders that the boards of the funds “institute procedures to prevent holding investments in companies that, in the judgment of the board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights.”
This is the second year that shareholder advocates have secured the issue on the ballot.
Last year, the same proposal was voted on for 16 funds and in some cases received as much as 31% of the shareholder votes in favor, according to Boston-based Investors Against Genocide, the non-profit organization that has led the shareholder action.
But none of the funds received a majority vote.
“Americans do not want their family savings and pension funds invested in companies that help to fund genocide, whether that genocide is occurring today in Darfur or anywhere else in the future,” Eric Cohen, chairman of Investors Against Genocide, said in a statement. “Ethical investing may mean different things to different people, but surely there is a minimum standard upon which everyone agrees.”
In the proxy filing, Fidelity outlined its opposition to the proposal.
“United States law prohibits investments in companies owned or controlled by the government of Sudan,” Fidelity wrote in the proxy. “FMR [LLC of Boston, Fidelity’s parent company] is committed to complying fully with these investment sanctions and any additional investment sanctions that the United States government might enact with respect to companies doing business in Sudan or any other country.”
The board also wrote that it “recognizes and respects that investors, including those investing [in these funds], have other investment opportunities open to them should they wish to avoid investments in certain companies or countries. Shareholders of the fund, however, have chosen to invest in this fund based on its specific stated investment policies. If adopted, this proposal would limit investments by the fund that would be lawful under the laws of the United States.”