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New fund shuns Sudan government
Monday, July 16th 2007, 4:00 AM
In their relatively short lives, exchange-traded funds have vied with stocks, bonds and mutual funds, offering investors a different tool for making their money grow.
Now one investment firm has found a new target, the violent and corrupt government of Sudan, in hopes of luring investors.
Claymore/KLD's Sudan Free Large-Cap Core Fund is certified free of any companies doing business with the East African nation, where hundreds of thousands of civilians have been killed in ethnic fighting.
Like all exchange-traded funds, it resembles a mutual fund yet can be traded during the day like a stock. The Sudan-free angle is the new twist.
"A growing number of investors want their investments to match their values," said Christian Magoon, director of product development at Claymore. "They want to see what they own, and maybe more importantly, what they don't own."
Chris McKnett of Boston-based KLD Research & Analytics said some stocks are eliminated based on their products, such as tobacco and firearms.
Managers also rule out stocks that do business with Sudanese companies.
"People feel that bringing attention to the issue through the investment process will bring change on the diplomatic front," McKnett said.
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