CA Pension Fund Faces Crisis After Shunning Guns, Tobacco
California’s public pension fund is facing an internal crisis over its past decisions to restrict its investments to socially conscious causes. A report from the Wall Street Journal indicates it is considering pivoting away from its socially conscious divesting to address its increasing budget crisis.
The California Public Employees Retirement System, simply known as Calpers, is wrestling with a budget deficit that is partially a result of the fund’s decision to ban investments in tobacco companies, the report states.
The fund missed out on more than $3.5 billion due to its divestment from tobacco stocks, a December 2016 recommendation found. The Journal