By Amanda B. Kish, CFA
May 18, 2007
In other Fidelity news, the company recently appeared to capitulate to demands from several human rights groups by selling off its holdings in Chinese oil firm PetroChina (NYSE: PTR). According to a recent regulatory filing, Fidelity cut its exposure to PetroChina ADRs by 91% as of the end of the first quarter of the year. PetroChina has extensive operations in the Sudan, and it's come under fire for its alleged ties to the genocide occurring in the Darfur region. Although Fidelity did not comment on its reasoning behind paring back its PetroChina holdings, most observers agreed that the company gave in to political pressures mounted by activist groups such as the Save Darfur Coalition and the Sudan Divestment Task Force.

In general, I'm not a big fan of socially responsible investing. I certainly believe its aims are noble, but I think investing is one place where you don't want to constrain yourself to companies that meet certain social guidelines. I think it's wiser to invest your dollars in those companies that offer the greatest potential for growth, and donate your time or money to causes about which you feel strongly. That said, this situation may be an exception.

The genocide in Darfur is truly horrendous, and the world as a whole needs to see what's going on there. In a case like this, I can't fault activist groups for pressuring Fidelity to divest this stock. Besides, Fidelity's holdings in PetroChina were a relatively insignificant portion of the firm's overall portfolio. Selling off its exposure probably won't meaningfully affect any Fidelity fundholders -- which should, of course, be the company's primary concern. Sometimes, industry leaders must set an example for others. I think Fidelity can gain a lot of good P.R. here, not to mention social progress, at very little expense to itself or its loyal fundholders.