Is Your Money Unknowingly Going To A Political Hotspot?

Cindy McCain, wife of Republican presidential candidate John McCain, just sold off more than $2 million in mutual funds whose investments included companies that do business with the government of Sudan, an African nation enmeshed in the government-supported genocide in the Darfur region.

The funds were American Funds Europacific Growth fund and American Funds Capital World Growth and Income fund, according to the AP, and both are criticized by the Sudan Divestment Task Force. The funds had holdings in two companies that do business with Sudan: Oil & Natural Gas Corp., of India, and Petrochina (PTR), a Chinese oil company.

Though Cindy’s move came after her husband called for financial sanctions against Sudan, it could also be classified as socially responsible investing. SRI investing integrates social, environmental or governance criteria into investment decisions, says Adam Sterling, project director for the Genocide Intervention Network.

Are you concerned that funds in, say your 401(k), support companies whose politics you disagree with? Your values are your own, of course, but other investors choose to divest from companies with poor records on the environment, diversity or labor relations. Ask your financial manager what’s in your mutual funds, then research the companies’ reputations yourself. One resource shareholders can use to research the companies within their holdings is Sterling's web site’s mutual fund screening tool, which can flag problematic investments on the Darfur issue.

If you’ve done your research and discover your investments do not match your values, share your concern with your investment manager and ask about divesting, or investing in a socially responsible companies instead. Or you can also choose to do business with investment managers who only invest in socially responsible companies.