Published by Financial Planning.

Money Management Executive
By Yueqi Yang
Published November 13 2017, 10:57am EST

Our weekly roundup of industry highlights
Vanguard urges vote against genocide-free investing

Vanguard is asking shareholders to vote Wednesday against a halt to backing companies that contribute to genocide, according to the ballot recommendation sent to qualified voters.

Investors Against Genocide, a non-profit group, is urging the shareholders of 48 Vanguard funds to vote on whether they want the asset manager to “avoid holding investments in companies that, in management’s judgment, substantially contribute to genocide or crimes against humanity.”

Vanguard’s opposition directly contradicts its published pledge to clients, which promises to “hold ourselves to the highest standards of ethical behavior and stewardship,” said Eric Cohen, chairman of Investors Against Genocide.

“We have attempted to engage in dialogue with Vanguard to find common ground,” he continued, “but so far, the company has refused to meet with us.”

Recent findings show Vanguard has $1.9 billion invested in a small set of companies that back regimes in Sudan, Syria and Myanmar, according to Investors Against Genocide.

In an email to Money Management Executive, Vanguard’s head of corporate public relations, Arianna Stefanoni Sherlock, said that, while the humanitarian issues focused on in the proposal “are of consequence and deep concern, we believe diplomatic and political action are a more viable means to resolve them.”

Vanguard, she continued, “cannot manage the funds in an effective manner by seeking to meet the wide range of social and political beliefs held by our 20 million clients and, at the same time, uphold our fiduciary responsibility to deliver competitive investment returns.”