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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTeachers pension fund votes to sell holdings in firearms, ammo clips
Last edited Wed Jan 9, 2013, 10:08 PM - Edit history (1)
Acting on a request from the state treasurer, the board of the state teachers pension fund has begun the process of selling its holdings in some gun and ammunition-clip manufacturers.
Treasurer Bill Lockyer's motion was approved unanimously Wednesday by the Investment Committee of the $154-billion California State Teachers' Retirement System.
Lockyer brought the issue to the board in response to December's mass shooting of 20 students and six adults at Sandy Hook Elementary School in Newton, Conn.
"CalSTRS' action targets ammunition clips that turn ordinary guns into killing machines, assault weapons and other firearms that pose extreme dangers to public health and safety," Lockyer said. "Divestment from the makers of these products complies with the board's fiduciary duty and its investment policy, which specifically allows divestment from manufacturers of products that endanger public health."
http://www.latimes.com/business/money/la-fi-mo-pension-votes-firearms-divestment-20130109,0,4942689.story
NYTimes
(snip)
An official of the Los Angeles pension fund for police and fire fighters said one of its trustees had also sought an evaluation of how its investment in the Freedom Group comported with its investment policies. The Los Angeles Police Department is also a customer of the company.
Connecticuts treasurer, Denise L. Nappier, who is the sole trustee of that states pension fund, said the funds only stake in a weapons manufacturer was in Alliant Techsystems, which sells ammunition. But she said she was also looking for potential problems among companies that sell and distribute weapons.
New York Citys five pension funds which were valued at $127.8 billion in September contain nearly $18 million in weapons and ammunition companies, the city comptrollers office said. The comptroller, John C. Liu, said in a statement that the funds are reviewing their holdings in gun manufacturers and are considering all options, including divestment, to ensure that public pension dollars do not support weapons that can destroy a community in the blink of an eye.
http://www.nytimes.com/2013/01/10/business/california-teachers-fund-to-divest-of-gun-stock.html?_r=0
nadinbrzezinski
(154,021 posts)I need to talk to investment guy...investment in defense and weapons manufacturer is not to even be considered. Never mind they always do well.
cantbeserious
(13,039 posts)eom
ProgressiveProfessor
(22,144 posts)The stock will be sold to someone at a mutually agreeable price, like all stock transactions. The company itself will be impacted by it in all likelihood.
Hoyt
(54,770 posts)Will impact EPS, hence stock price. In any event, glad to see gun manufacturers being viewed like polluters, tobacco companies, etc.
ProgressiveProfessor
(22,144 posts)And if you are in the magazine business, you will continue to build magazine for a market that is buying up all you can make.
Hoyt
(54,770 posts)That's why we need to end this celebration of guns and killing accessories.
ProgressiveProfessor
(22,144 posts)Magazines wear out. Having spares on the shelf is fine. Its the shooter not the gun
Hoyt
(54,770 posts)neighborhoods. I also think they trigger people to do things clearly detrimental to our society, certainly enables gun cultists.
Guns - especially the way we tolerate them today - just aren't good for society or those who covet them.
ProgressiveProfessor
(22,144 posts)Optical sights? Laser sights? Maybe 100 round magazines?
Hoyt
(54,770 posts)ProgressiveProfessor
(22,144 posts)ReRe
(10,597 posts)ProgressiveProfessor
(22,144 posts)If not, it could get "amusing"
libdem4life
(13,877 posts)ProgressiveProfessor
(22,144 posts)The BOD of a pension is not unlike the BOD of a business. They have the legal obligation to maximize return of the shareholders/beneficiaries. This does not mean they have violated the law if they don't as long as the decisions were reasonable and prudent at the time. That is a pretty lose standard and subject to lots of interpretation. BofA in the 60s found out the hard way.
If the CALSTRS dumps an investment for non-financial reasons (like this) and if a loss is taken that could have been otherwise avoided the BOD is open for a lawsuit. This is not a new concept and its safe to say that CALSTRS will find a way to cover themselves. Even so, all it would take is one member to file suit with the backing of some repuke foundation to really make a mess of things if its not done perfectly.
libdem4life
(13,877 posts)and I'm going to predict that this will become a self-fulfilling prophecy, as did investments in Rhodesian South Africa and tobacco and probably liquor (not sure about this one), that people/investors have a right to determine where their funds are invested,which provides de facto financial support. Educational concerns might be appropriate to give ATF businesses a pass.
Another take, if it can't be legally advertised on public airwaves, it's probably not an appropriate educational investment.
What I applaud is that California is yet again, providing leadership that will shift the public discourse and other educational investment funds will follow. It couldn't happen to a more "deserving" industry.
(I don't know what IANAL means...kind of a newbie as my post count shows...
ProgressiveProfessor
(22,144 posts)Pension plans are as concerned about beneficiary suits and corporations are concerned about share holder suits. They tend to become expensive nuisances and some times lead to piling on.
Alcohol has been a decent investment if you chose carefully, and until Newtown, firearms and accessories were too, but more of a short play.
Once the stock is sold, who buys it afterwards does not impact the company significantly. Firearms and accessory makes have had a great 2012. Newtown caused such panic buying that brick & mortar as well as online venues are empty. That includes firearms, accessories, ammunition, and even reloading supplies (a first).
CALSTRS and CALPERS have had a host of problems over the years, including being pillaged by the state to pay other bills. Some of that is under control now. Leadership? Not that others should follow overall, they track record is not all that bright
libdem4life
(13,877 posts)for financial choices...at least in education.
ProgressiveProfessor
(22,144 posts)CALSTRS and CALPERS were hurt badly in the last decade. They have been predicting growth well head of anyone else so they can claim they are healthy. The reality is that they most likely will have to increase contributions with a shrinking base. They are not the only public employee pension fund facing such issues.
Hoyt
(54,770 posts)about to be decimated by public disdain, and/or regulation.
ProgressiveProfessor
(22,144 posts)Hoyt
(54,770 posts)ProgressiveProfessor
(22,144 posts)As for my own profits, you know I don't charge for my classes. How else would I profit? I have only 4 in the safe in my house. Are you saying I should buy more?