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Sample Letter to Mutual Fund Managers
THIS LETTER SHOULD ONLY BE SENT AFTER YOU HAVE SENT AN INITIAL INQUIRY TO YOUR MUTUAL FUND MANAGER REQUESTING THAT THEY DIVEST. CLICK HERE FOR AN INITIAL INQUIRY TEMPLATE LETTER
Tell your mutual fund company you have divested from funds containing companies that support genocide.
For a list of "Highest Offenders" in Sudan, click here to subscribe to the Sudan Company Report.
To Whom It May Concern:
I would like to inform [YOUR MUTUAL FUND COMPANY] that I have divested my personal holdings from [NAME OF MUTUAL FUND] because it contained holdings in problematic companies operating in Sudan. My action is in response to the government-sponsored genocide in the country's Darfur region. As you may know, Darfur marks the first time in history that the United States has classified a conflict as genocide while atrocities are still ongoing.
I understand that firms such as [THE HIGHEST OFFENDING COMPANY/COMPANIES PRESENT IN YOUR MUTUAL FUND] are often instrumental in promoting positive development in the countries in which they operate. However, while foreign direct investment (FDI) can aid civilian populations and promote democratization, certain types of FDI in Sudan have been directly or indirectly linked to the facilitation of Darfur's genocide - a fact documented by numerous governments, non-governmental organizations, and foreign policy experts. Furthermore, Sudan historically has been responsive to economic pressure. Possessing neither the capital nor the expertise to fully exploit its own oil resources, the government of Sudan is highly reliant on FDI to fund its military and facilitate conflict in Darfur. It is estimated that up to 70% of the government of Sudan's oil revenues go towards its military expenditures. Furthermore, events in Sudan and the prospect of continued international sanctions have led investors to question not only the social ramifications, but also the financial prudence of investing in problematic companies operating in the country.
While I fully recognize that [YOUR MUTUAL FUND COMPANY] has a responsibility to provide clients with services of the highest value at the lowest possible cost, the increasing number of fiduciaries implementing targeted Sudan divestment policies suggests that demand is present for Sudan-free funds. Only a small subset of problematic companies merit divestment. These companies frequently make up a very small percentage of a fund's overall portfolio and, given the abundance of similarly situated and equally profitable replacements, a fund manager can remove these companies without compromising his/her current investment strategies. [YOUR MUTUAL FUND COMPANY] can therefore divest from these companies while still providing top quality investment returns. In fact, considering the material risk posed by "Highest Offenders" and the notable underperformance of these companies in the last few years, it may be financially imprudent to continue to invest in "Highest Offenders".
Given the current situation in Darfur, I hope that you will seriously consider joining me and the growing number of investors who seek to avoid investing in companies tied to genocide. If [YOUR MUTUAL FUND COMPANY] is willing to divest from these companies, I will consider moving my investments back to [NAME OF MUTUAL FUND]. Please notify me at your earliest convenience if any actions are taken on this matter, so that I may make responsible decisions regarding my investments.
Sincerely,
[NAME]
[ADDRESS]
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