The Hill recently featured an op-ed written by Equable Institute’s Executive Director Anthony Randazzo on why pension funds should think twice before engaging in a politically-driven divestment from Unilever due to Ben & Jerry’s—owned by the body wash conglomerate—decision to to pull its products from the West Bank in solidarity with Palestinians.
“The biggest problem here is that near-term political incentives threaten the investment returns needed to fund promised pensions for teachers, firefighters and city employees,” Randazzo writes. “Administrations change, and the social and political views of one governor may not align with his or her successor.”
Furthermore, the piece argues that any investment or divestment decision made by a pension fund should be rooted in financial logic only—and not because of geopolitics.
“Pension fund managers must sometimes make investment choices that are socially unpopular but still represent the best financial interests of public employees’ assets.”
Read the full op-ed on this particular politically-driven divestment, “Ice cream, politics and pension funds are not a winning recipe” on The Hill by clicking here.