CalPERS Opts to Keep Ban on Tobacco Stocks
CalPERS said no again to tobacco Monday.
Amid a passionate debate on the wisdom and morality of investing in tobacco, the big California pension fund rejected a recommendation by its staff to end its 16-year-old ban on the practice. CalPERS’ investment committee, in a 9-3 vote, concluded that the tobacco industry is heading toward long-term decline and presents too much of a risk
Because the investment committee consists of every member of the governing board, the vote represents the final decision.
Not only will CalPERS not reinvest in tobacco, it chose to unload $547 million worth of tobacco investments that it has continued to hold indirectly, through funds operated by outside investment managers.