Rhode Island's state pension fund is taking steps to rid itself of a $20 million investment in a company that distributes firearms, and will look at its overall investment policy to better reflect its values.
"Gun violence is unacceptable," said General Treasurer Gina Raimondo, who chairs the nine member State Investment Commission which oversees the nearly $8 billion fund which pays pension benefits to tens of thousands of retirees.
"I'm a mother, I have two kids in public school, I worry for my kids. Gun violence is out of control, it's unacceptable, it's hurting our children, it's hurting our communities. Rhode Island ought to be a leader in taking a stand to reduce gun violence, and that's what we did here today," said Raimondo, a Democrat who is considering a run for governor in 2014.
The unanimous Investment Commission vote begins the process toward shedding the fund's investment in Wellspring Capital Partners IV, a private equity fund with a direct investment in United Sporting Companies, a South Carolina based wholesale distributor of firearms, shooting accessories, hunting supplies and marine accessories.
Raimondo said that the Investment Commission will look at other investments, including stocks, with an eye toward ridding the pension fund of other investments that it finds objectionable.
"We're in the process of creating the state's first ever corporate governance program, which is some guiding principles for all of our investments, which will include guns. That's a longer term strategy, where we're going to look to express our values in that corporate governance policy."
The State Investment Commission also voted to authorize changes in the investment offerings of the state-run CollegeBound Fund, the college savings plan under Section 529 of the IRS code, which has been criticized in recent years for poor performance.
Based on an independent analysis, the Commission instructed the investment manager of the fund, Alliance Bernstein asset management company to replace underperforming funds and to create investment options with lower investment fees.
