Fidelity Investments: Against Genocide to the Minimum Extent Required by Law
The current shareholder meeting for Fidelity includes a proposal for the board to implement procedures to avoid investing in companies complicit in genocide. The proposal is pretty straightforward and very minimal:
RESOLVED:
Shareholders request that the Board 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.
But the Board (which gives their recommendation for every proposal) is against it:
[... repetitive bit about how they comply with the letter of the law ...] The Fidelity Funds Board of Trustees recognizes and respects that investors, including those investing in this Fund, 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. For this reason, the Board of Trustees recommends that you vote AGAINST this proposal.
In other words, if you want the fund to have even the most minimal ethics restrictions on its investments, go elsewhere. Some people like profiting from genocide, and it would be wrong to ruin things for them.
Needless to say, this gives me a very low opinion of the Fidelity trustees.
RESOLVED:
Shareholders request that the Board 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.
But the Board (which gives their recommendation for every proposal) is against it:
[... repetitive bit about how they comply with the letter of the law ...] The Fidelity Funds Board of Trustees recognizes and respects that investors, including those investing in this Fund, 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. For this reason, the Board of Trustees recommends that you vote AGAINST this proposal.
In other words, if you want the fund to have even the most minimal ethics restrictions on its investments, go elsewhere. Some people like profiting from genocide, and it would be wrong to ruin things for them.
Needless to say, this gives me a very low opinion of the Fidelity trustees.