Thursday, November 12, 2009
By Patricia Kelly
Standing at the intersection of social responsibility and investing, iShares unveiled plans on Thursday to create the iShares Genocide-Free Exchange Traded Fund.
The new ETF is specifically directed at screening out companies worldwide that are strongly connected with genocide. BGI plans to rely on third-party index providers to identify and avoid investing in genocide-linked companies. The fund arrives at a time when calls for socially responsible funds, such as 'green' funds that invest in alternative energy, continue to grow louder and reach a broader audience.
“We believe there is investor interest in genocide-free investing,” stated Noel Archard, head of product research and development at iShares. “Creating this new fund could provide investors with an additional reputable socially responsible iShares ETF and address investor concerns on this issue.”
Although the plan is still in its incubation stage, it has already garnered positive praise from the Investors Against Genocide group, a non-profit organization that seeks to raise awareness and encourage mutual funds and investment firms to avoid complicity in genocide. IAG has come to blows with other mutual fund giants like American Funds, Fidelity and Vanguard.
“We consider this announcement by iShares an important step forward in the effort to advance the practice of genocide-free investing,” stated Eric Cohen, the chairperson of IAG. “While most US mutual fund companies have declined to take any action, iShares has listened to the marketplace and has taken a significant step forward by announcing plans to develop the first international genocide-free fund for retail investors.”
Meanwhile, money manager BlackRock Inc. is preparing to close on a deal to acquire iShares' parent company, Barclays Global Investors (BGI).