Colorado Governor Throws Weight Behind Pension Divestment Bill
According to the Associated Press, Ritter said that targeted investment can help ensure state pension funds are redirected in a responsible way.
However, some critics argue that forcing funds to divest money in companies with ties to the Sudanese government could cause fiduciary problems by allowing an agenda other than getting the highest returns for investors to guide investment decisions (See Public Pension Fund Divestment: A Fiduciary Risk? ).
Such measures have passed in North Carolina, Maine and New Jersey and are still on the table in Florida and Maryland . In Illinois, divestment legislation hit a roadblock in February when the state’s Supreme Court ruled that the federal government alone holds the power to regulate foreign commerce (See Court Blocks Illinois Sudan Law ).
In April, the California State Teachers Retirement System’ (CalSTRS) withdrew its backing for divestment legislation (See CalSTRS Opposes Broad Investment Bans), saying that sweeping investment bans could hurt investment returns and cost the fund money.