Sudan Divestment Update

Divestment Issues, Regulatory Updates….
Lessons Learned

Wednesday, May 24, 2006
1:00 p.m.-3:00 p.m. EDT /
10:00 a.m.-12:00 p.m. PDT

Please join us for a wide ranging discussion on the Sudan divestment campaign.

Who should attend?:  Pension fund managers, trustees of pension plans, state treasurers, investment managers, scholars and all others who have an active interest in the Sudan divestment movement.

Discussion topics will include:

• Sudan & South Africa: A Tale of Two Divestment Movements
  Many commentators have equated the Sudan and the South Africa divestments. In fact, the cases for the two are more different than similar. But those differences – in the countries involved, their economic importance and the nature of the conflict – only make imperative the case for Sudan divestment.
  Peter Kinder, KLD Research & Analytics, Inc.
  
  
• A Long Day's Dying: Genocide by Attrition in Darfur
  Since the National Islamic Front regime in Khartoum seized power by military coup in 1989, the regime has ruled by means of tyranny, a ruthlessly efficient network of security services, and a brutal domestic policy that includes serial genocide. The regime could not survive long without the economic and personal financial benefits that derive directly from foreign investment. This presentation will provide an overview of the origins of genocide in Darfur, as well as the economic conditions that sustain genocidal tyranny in Khartoum. Particular attention to the continued importance of divestment campaign in the wake of the recent Abuja agreement. The moral and fiduciary issues that attend a divestment campaign, as well as the broader question of the efficacy of such a campaign will also be discussed.
  Eric Reeves, Smith College
  
  
• State of Illinois Divestment Movement: Blazing a Trail
  The state of Illinois was the first government entity in the nation to require that public pension systems divest from commercial enterprises that are active in Sudan. During the drafting stages and the early implementation stages of the legislation, one of the most common objections raised was that divestment was practically impossible, primarily because the U.S. government is unwilling or unable to identify which domestic and international companies would be impacted. In the months following enactment, creative market forces and creative approaches on the part of some pension systems and their asset managers have combined to make divestment a very real possibility...So much so that other public entities - including states, municipalities, and universities - are now in a position to follow suit.
  Joe Clary, State of Illinois
  
  
• Student-led Divestment Strategy and Beyond
  Based on conversations with foreign policy experts, asset managers, third-party research firms, and other institutions, The Sudan Divestment Task Force has introduced a model of divestment that limits the scope of companies and investments targeted to allow for maximum effectiveness and provide for the most options financially.
  Adam Sterling, University of California
  Daniel Millenson, Brandeis University
  
  
• Mandate Implementation from a Money Manager's Point of View
  For Northern Trust, passage of the Illinois law on Sudan divestment created an opportunity to provide an investment solution to our public fund clients. To create its Sudan-free products, NTGI applied the guidelines created by KLD for divestment compliance. NTGI created special institutional funds to track six major equity indexes, utilizing its proprietary quantitative investment process and extensive experience in customized benchmarks to construct portfolios that minimize the tracking variance caused by the elimination of the divested stocks in “Sudan-free” versions of the indexes. NTGI also created Sudan-free active portfolios through its Emerging/Minority Managers Program. As of March 31, 2005, Northern Trust had $8.5 billion under management in Sudan-free separate accounts, $8 billion under management in the special purpose institutional funds, and $300 million under management in Sudan-free manager-of-managers programs.
  Don Pollak, Northern Trust Global Investments
  
  
• The Process for Researching Company Involvement in Sudan
  KLD's Sudan research process is designed to create and maintain a list of publicly traded companies with confirmed, current involvement in Sudan. As part of the Sudan research process, KLD reviews information from government agencies (including the Office of Foreign Asset Control), customized press searches, trade journals, corporate documents, and industry and regional publications. KLD's Sudan Research process is ongoing, as we continually monitor new entrants to Sudan, as well as companies who have ended operations in that country.
  Claire Moroni, KLD Research & Analytics, Inc.

SPEAKER BIOGRAPHIES

PETER KINDER Top
President
KLD Research & Analytics, Inc.

Peter D. Kinder is President of KLD Research & Analytics, Inc., which he co-founded in 1988. KLD's mission is to remove barriers to socially responsible investing by providing institutional investors with social research, compliance services, benchmarks, performance analytics and consulting. The firm is best known for the Domini 400 Social Index, the first index for socially screened US equity portfolios, created in 1990.

Peter is the author or co-author of several books on socially responsible investing including: Ethical Investing (1984), The Social Investment Almanac (1992), Investing for Good (1993), and Mission-Based Investing (1999). His numerous articles have appeared in publications in the US, Canada, the UK and India.

KLD is a co-founder of the Sustainable Investment Research International Group (SiRi) and Peter has served on its board. He also served two terms on the board of the U.S. Social Investment Forum, one as vice chair.

Prior to co-founding KLD, Peter practiced law as an assistant attorney general in Ohio, then in Boston as a staff lawyer for a foundation and finally in private practice specializing in administrative law and corporate regulation. He co-authored Law and Business (1982).

Peter received an A.B. in History from Princeton University in 1970 and was awarded a J.D. from Ohio State University in 1973, both with honors. He was admitted to the bar in Ohio (1973), the District of Columbia (1977), and Massachusetts (1978). .

ERIC REEVES Top
Professor of English Language and Literature
Smith College

Eric Reeves is Professor of English Language and Literature at Smith College in Northampton, Massachusetts. He has spent the past seven years working full-time as a Sudan researcher and analyst, publishing extensively both in the US and internationally. He has testified several times before the Congress, has lectured widely in academic settings, and has served as a consultant to a number of human rights and humanitarian organizations operating in Sudan. Working independently, he has written on all aspects of Sudan's recent history. He has recently received a generous grant from the Humanity First Initiative of the Omidyar Network to support his research and travel. The flexibility of Smith College has allowed him to take a number of semesters as leave without pay. He is presently at work on a book surveying the international response to ongoing war and human destruction in Sudan ("Sudan - Suffering a Long Way Off").

ADAM STERLING Top
National Policy Director of the Sudan Divestment Task Force and Co-chair of the UC Sudan Divestment Taskforce
University of California

Adam is a recent graduate of the University of California, Los Angeles and will be attending the Masters program in African Studies in the fall.

DANIEL MILLENSON Top
Brandeis University
Executive Director of the Sudan Divestment Task Force

Daniel is an undergraduate student at Brandeis University in Waltham, Massachusetts.

JOSEPH CLARY Top
Parliamentarian
Office of Illinois State Senate President Emil Jones, Jr.

Joseph Clary is the Parliamentarian for the Illinois Senate, appointed to that position by Senate President Emil Jones, Jr. A talented lawyer and writer, he has helped public and private officials develop, win, implement, and defend progressive legislative initiatives for more than 15 years: he helps develop comprehensive legislative packages, drafts legislation and administrative rules, identifies financing and incentives, confers with stakeholders, builds coalitions, briefs public officials, writes OpEds and other media, and wins public support. Notable successes include the Illinois Act to End Atrocities and Terrorism in Sudan; the Illinois Equity in Eminent Domain Act; the Illinois Education for Homeless Children Act; and several initiatives to promote literacy, school readiness, and crime prevention among disadvantaged kids.

In his work as general legal counsel, he also advises government and business leaders on corporate formation, operations, ethics, personnel, and procurement. He prevents and resolves disputes; prepares and oversees litigation; negotiates and drafts contracts that drive performance and prevent disputes; and revises internal polices to ensure legal and ethical compliance.

Before his current tenure with the Illinois Senate, he served as Chair and member of the Executive Committee for the Connecticut Commission for Children. He worked as Director of Legislation, Regulation, and Communications for Connecticut's executive branch, and as the Executive Director and Counsel for the Illinois Coalition to End Homelessness.

Prior to his work in systemic reform, he worked as an associate attorney with the law firm of Gozdecki and DelGuidice, in Chicago. In that capacity he helped draft complex agreements involving professional sports teams, stadiums, media, and beverage distributors. He also drafted winning trial and appellate briefs in cases involving equitable relief, commercial torts, contract disputes, consumer fraud, intellectual property, civil rights, employment law, labor law, homicide, official misconduct, and fraud. He has also taught fifth grade, college composition, and legal writing.

He obtained his law degree from the University of Notre Dame, with coursework in international law in Cork, Ireland and London. His M.F.A. (in writing) is from the University of Alaska, with coursework in Irish literature at University College, Cork. His B.A. (Philosophy) is from the University of Dallas, with coursework in Rome, Italy.

DONALD R. POLLAK Top
Senior Vice President,
Director, Investment Relationship Management
The Northern Trust Company

Don is responsible for assisting his client base in developing optimal investment solutions tailored to meet their needs, sharing of investment ideas, providing organizational and investment product updates, answering day-to-day administrative and reporting questions and serving as a main investment contact for the client.  Don is also responsible for assuring his clients’ satisfaction with the overall services of Northern Trust Global Investments. Previously, Don was a member of the Analytical Services Division.  There his responsibilities included the delivery and interpretation of performance reports, analysis of Barra risk applications, and passive management of both equities and financial futures funds. 

Don joined Northern Trust as a senior accountant in the Employee Benefit Administrative Services division with responsibility for the accounting and daily maintenance of several master trust accounts and later served as supervisor of that group. 

Don has a B.S. cum laude, in organizational administration and marketing from the University of Illinois, Champaign-Urbana.  He is a Registered NASD Principal with Series 3, 7, 24, 63 Licenses.  Don is a member of the Association for Investment Management and Research and the Investment Analysts Society of Chicago.

CLAIRE MORONI Top
Lead Research Analyst and Project Manager for KLD Sudan Compliance
KLD Research & Analytics, Inc.

Claire Moroni is the lead research analyst and project manager for KLD Sudan Compliance. Claire manages the research process to identify companies operating in Sudan. In addition, Claire serves as the assistant manager of KLD's client service department, and researches a portfolio of companies in the apparel, footwear, food, and beverage industries. Her work includes specialized research on supply chain labor issues affecting these industries. Claire has researched and managed KLD projects as part of the international SiRi consortium. She contributes to consumer products stakeholder teams for non-profit organizations including CERES, and multi-stakeholder teams providing expertise to companies on their CSR reporting. Claire initially joined KLD as contractor working on special research projects.

Prior to KLD, Claire worked for WCEV, a special interest programming radio station in Chicago, Illinois, in radio broadcasting. She has also worked previously for a private financial services firm. Claire holds a B.A. in History and English from Boston College.

She is a candidate for the Chartered Financial Analyst (CFA) designation, and is proficient in Spanish.