Doctors invest in firearms

File Photo, AFP
The Fund FMOQ international equity held at December 31 last year nearly 1,000 shares in the arms manufacturer Sturm, Ruger & Company. On the photo, an employee of the manufacturer gave a demonstration of assembling a weapon in front of the republicans during a visit of the factory of Newport, in the State of New Hampshire, in the United States, in January 2012.

Pierre Couture

Wednesday, 28 February 2018 00:00

UPDATE
Wednesday, 28 February 2018 00:00

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While the movement of grievances against the dealers is gaining momentum in the United States, the Fédération des médecins omnipraticiens du Québec (FMOQ) continues to invest in the securities of manufacturers of firearms, has been found The Journal.

The FMOQ, which holds its own fund for investment and retirement for its members, held yesterday, of the interests in at least two of the largest manufacturers of firearms in the United States.

According to Morningstar, the Fund FMOQ international equity held at 31 December last year more than 5200 shares in the arms manufacturer Vista Outdoor, and nearly 1,000 shares of the manufacturer Sturm, Ruger & Company.

In Canada, the Fonds FMOQ international equity is part of the 10 largest shareholders of these two manufacturers of firearms with the TD Bank, CIBC and HSBC Bank, says Morningstar.

“Peanuts “

Contacted by the Newspaper, The manager of the Fonds FMOQ has first of all shown to be surprised to see these titles appear in the international portfolio of the pension fund of quebec physicians.

“It could be. The manager of our international portfolio follows a strategy index. It follows the index “, was first defended the vice-president of the Fonds FMOQ, Jean-Pierre Tremblay, adding that about $ 2 billion of assets under management, these investments only accounted for ” peanuts “.

When asked about the side ethics of these investments so that doctors refer to in their practice to the Hippocratic oath (rules of professional ethics), the spokesperson of the Fonds FMOQ has attempted to minimize the importance of these investments.

“We try to respect in all of our funds responsible investments. But it would be a little unwise to give the manager [editor’s NOTE : CIBC] counter-orders in relation to the overall mandate to track the index. We will look at what it represents “, he said before to demonstrate an openness to revise its investment policy.

“You tell me, and honestly, I wasn’t even aware of it. We are going to ask the manager if this really has an impact to remove these securities from its strategy index, ” said Mr. Tremblay.

Lack of judgement

According to the fund manager Fabien Major and a columnist at the Journal, the Federation of general practitioners lack of judgement in continuing to invest in the securities of manufacturers of firearms.

“I am very surprised to see that they still have these securities in their portfolio. This is not a debate again. They have, however, a pension committee seriously. They are not obligated to hold these securities, ” said Mr. Major.

The increasing pressure on fund managers

More and more fund managers decide to drop their investments in manufacturers of firearms.

Since a few days, securities of the largest manufacturers of firearms are in free fall on the stock markets.

At the New York stock Exchange, the title of the manufacturer Sturm, Ruger & Company (RGR) has fallen by 8 % since the shooting occurred in a school in Parkland, Florida, on the 14th of February.

The title of the weapons manufacturer Vista Outdoor (VSTO), has also known better days. Since 14 February, has lost nearly 8 %, just like the one in American Outdoor Brands (AOBC), down 4 %.

Shareholders of Sturm, Ruger & Company and American Outdoor Brands have also asked the leaders of these two companies detailing the financial risks linked to the shootings in the United States.

Several large investment funds, such as BlackRock and BlackStone, have decided to review their policies of investment in the sector of firearms as well as retailers who sell guns in their stores, such as Walmart in the United States.

The Caisse sensitive

In Quebec, several large investment funds have indicated to the Journal does not have investments linked currently with manufacturers of firearms.

“We’re sensitive to this kind of investment. We don’t have any in our portfolio “, stated yesterday the spokesman of the Caisse de dépôt et placement du Québec Maxime Chagnon.

The Fund is said to have invested in the fund, Cerberus (which also held such as the manufacturer of firearms in bankruptcy Remington). “It is out of such investments since,” said Mr. Chagnon.

The Fonds de solidarité FTQ, it also indicates that it does not hold securities of manufacturers of weapons, just like at Desjardins.

They take their distances

Several major companies linked to the powerful lobby of firearms, the National Riffle Association (NRA), have also decided to take their distances in the industry.

Car rental companies Hertz and Enterprise (Alamo, National), insurers, Metlife, and Chubb, the security company Symantec, the carrier Delta and Best Western hotels don’t want to be associated with the NRA.

The country, the chain of outdoor stores MEC was asked by some members to abandon its business relationship with Vista Outdoor to Utah.

THE FONDS FMOQ

• Activity : pension Fund of médecins omnipraticiens du Québec
• Date of creation : 1979
• Number of funds : 9
• Total assets under management : nearly $2 billion
• Number of participants : more than 7000

Source : Fonds FMOQ