Iran General NewsMcCain, Obama funds invest in firms working in Iran

McCain, Obama funds invest in firms working in Iran

-

ImageUSA Today: John McCain and Barack Obama have urged investors to steer clear of Iran, but their family investments include mutual funds with shares in companies doing business in the oil-rich country, their financial disclosures show.

USA Today

By Matt Kelley and Ken Dilanian, USA TODAY

ImageWASHINGTON — John McCain and Barack Obama have urged investors to steer clear of Iran, but their family investments include mutual funds with shares in companies doing business in the oil-rich country, their financial disclosures show.

Obama decided to sell his mutual fund investment after USA TODAY asked about it Monday, spokesman Ben LaBolt said.

Tucker Bounds, a spokesman for McCain, did not say whether McCain and his wife, Cindy, still held their Iran-related investments. "We are sensitive to the situation. We're reviewing it, and evaluating the best course of action."

McCain, the presumptive Republican presidential nominee, raised the investment issue Monday in a speech to the American Israel Public Affairs Committee. He called on corporations and government institutions to pull their money out of Iran.

"As more people, businesses, pension funds and financial institutions across the world divest from companies doing business with Iran, the radical elite who run that country will become even more unpopular than they are already," McCain said.

A trust for the McCain children, a fund controlled by Cindy McCain, had between $315,000 and $650,000 in three JPMorgan mutual funds with investments in companies doing business with Iran, according to John McCain's 2006. disclosure report, the most recent available.

JPMorgan's website shows that each fund's top investment is with an oil company that works in Iran: Total SA of France for the firm's International Equity Fund; Eni SpA of Italy for the International Equity Index Fund and Petroleo Brasileiro SA of Brazil for the Emerging Markets Equity Fund. All three firms list their operations in Iranian oil fields in their latest annual reports.

Last month, Cindy McCain sold about $2 million worth of shares in two other mutual funds that invested in companies doing business in Sudan, which the Bush administration has accused of genocide. Obama sold his stakes in similar Sudan-related mutual funds last year.

Obama reported having investments in 2006 totaling between $100,001 and $250,000 in the Vanguard Wellesley Income Fund, which owns shares of three oil companies doing business in Iran: Total, BP PLC and Royal Dutch Shell PLC. Obama's sale of that investment will be effective Tuesday, LaBolt said.

Obama has called for divestments in Iran-related companies and sponsored legislation last year that would make it easier for states to divest their pension funds from companies that support Iran's oil and gas industry. The measure would require the Treasury Department twice a year to release a list of firms doing more than $20 million in business in Iran's energy sector.

Obama's rival for the Democratic nomination, Hillary Rodham Clinton, has her assets in a blind trust, meaning she has no knowledge of or control over the investments.

Federal law prohibits U.S. companies from doing business with Iran. Companies based overseas do not have the same restrictions.

Several states have moved to drop pension fund investments in companies with Iranian operations. The latest was McCain's home state of Arizona, where Democratic Gov. Janet Napolitano signed a law May 23 requiring state pension and investment funds to unload any Iran-related investments.

The issue of divestment from Iran hasn't yet become a prominent concern among socially responsible investors, says Daniel Allen, senior vice president at Mark J. Lane Wealth Group, a Chicago firm that puts together socially responsible investment portfolios.

"I don't think there's a clear consensus at this point" about how to divest from Iran, Allen said.

The foreign policy implications of Cindy McCain's investments came up last month, when the Associated Press asked McCain's campaign about her investments in mutual funds that own shares in companies doing business with Sudan. McCain has criticized the Sudanese government for killing civilians in Darfur.

Last year, Obama said in a statement that he sold about $180,000 in his holdings in a different Vanguard fund, the Wellington Fund, because the fund owned shares in Schlumberger a French oil-services company that does business in Sudan. Wellington also owns shares in companies that do business in Iran, including Schlumberger, Royal Dutch Shell and Syngenta, a Switzerland-based agribusiness company.

Obama transferred the $180,000 in the Wellington fund to the Vanguard FTSE Social Index Fund. That index, which is meant to invest in socially responsible companies, does not screen for investments in businesses that work in Iran, Vanguard spokesman John Woerth said in an interview.

Latest news

Iran: “The Conquest of the Power Structure by Brokers and Corrupt People”

Iran supreme leader Ali Khamenei's faction seeks to attribute the widespread poverty, inequality, class divide, bankruptcy, and current economic...

Protests Continue in Khuzestan for the Seventh Night

At night on July 21, the people of the southwestern Iranian province of Khuzestan once again took to the...

In the Real World, China and Russia Are Turning Away From Iran

Negotiations to revive the 2015 Iran nuclear deal JCPOA have stalled, and the task of the seventh round of...

Iran Economic Collapse, As Explained by State Media

The Iranian economic crisis, caused solely by the mullahs’ corruption and failed policies, is now at a critical point...

Drought in Khuzestan Due to the Implementation of a Non-Expert Water Transfer Project

The water crisis in Iran has become one of the main crises. One of the worst-hit areas is the...

AMIA a Case of Unresolved Terror by Iran’s Regime

On Sunday, May 18, family members of the bombing victims of the Argentina-AMIA Jewish Center building which happened 27...

Must read

Urgent: Cargo plane crashes close to Iran capital

Iran Focus: Tehran, Iran, Mar. 28 – An Iranian...

Iran refuses to return to full nuclear suspension

AFP: Iran said Sunday it would not return to...

You might also likeRELATED
Recommended to you