Swedish fund closes the door on Wal-Mart
Swedish fund closes the door on Wal-Mart
The pension group is the latest to follow in the steps of Norway's oil fund, criticizing the company for violations of labor rights.
September 7 2006: 3:10 PM EDT
STOCKHOLM (Reuters) -- A Swedish state pension group has followed Norway's oil fund in dropping the world's largest retailer, Wal-Mart, as an investment, saying the U.S. company had violated human rights in the labor market.
Wal-Mart (up $0.54 to $45.94, Charts) shares were up more than 1 percent during afternoon trade on the New York Stock Exchange.
Wal-Mart said it did not comment on individual investor decisions, but spokeswoman Amy Wyatt added: "We strive to adhere to the highest standards in the treatment of each and every one of our own associates. These matters are among our highest priorities as a company."
The Swedish Second National Pension Fund said it had sold its small stake of shares in Wal-Mart and Wal-Mart Mexico, worth about 300 million Swedish kronor ($9.14 million), out of total funds of 194 billion kronor it has under management.
"The Second AP Fund has since 2003 written letters, voted at shareholder meetings and taken part in an investor group to influence the company [Wal-Mart], but there has been no change in the company's view of labor rights," it added.
The fund group did not detail its objections. Norway said in June that its more than $240 billion oil fund would no longer invest in the U.S. firm.
The Bentonville, Arkansas-based firm has stepped up efforts to counter criticism it pays low wages, discriminates against women and drives local retailers out of business.
The second AP fund is one of four so-called buffer funds in the Swedish pension system that aim to smooth strains on the system when retirement reaches a peak.
Copyright 2006 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2006 Cable News Network LP, LLLP. A Time Warner Company ALL RIGHTS RESERVED.
The pension group is the latest to follow in the steps of Norway's oil fund, criticizing the company for violations of labor rights.
September 7 2006: 3:10 PM EDT
STOCKHOLM (Reuters) -- A Swedish state pension group has followed Norway's oil fund in dropping the world's largest retailer, Wal-Mart, as an investment, saying the U.S. company had violated human rights in the labor market.
Wal-Mart (up $0.54 to $45.94, Charts) shares were up more than 1 percent during afternoon trade on the New York Stock Exchange.
Wal-Mart said it did not comment on individual investor decisions, but spokeswoman Amy Wyatt added: "We strive to adhere to the highest standards in the treatment of each and every one of our own associates. These matters are among our highest priorities as a company."
The Swedish Second National Pension Fund said it had sold its small stake of shares in Wal-Mart and Wal-Mart Mexico, worth about 300 million Swedish kronor ($9.14 million), out of total funds of 194 billion kronor it has under management.
"The Second AP Fund has since 2003 written letters, voted at shareholder meetings and taken part in an investor group to influence the company [Wal-Mart], but there has been no change in the company's view of labor rights," it added.
The fund group did not detail its objections. Norway said in June that its more than $240 billion oil fund would no longer invest in the U.S. firm.
The Bentonville, Arkansas-based firm has stepped up efforts to counter criticism it pays low wages, discriminates against women and drives local retailers out of business.
The second AP fund is one of four so-called buffer funds in the Swedish pension system that aim to smooth strains on the system when retirement reaches a peak.
Copyright 2006 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2006 Cable News Network LP, LLLP. A Time Warner Company ALL RIGHTS RESERVED.
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