California State System Reports No Direct Investments in Israel

The California State University System recently indicated that it has no direct ownership of stocks or bonds in companies based in Israel but has minimal indirect holdings there through mutual funds, EdSource reported. System administrators do not plan to alter these investments, despite calls from pro-Palestinian faculty members and students to do so.

CSU officials presented a report on system investments at a Board of Trustees meeting on Tuesday, noting that CSU’s investments and investments by auxiliaries, nonprofits that provide supports and services on campuses, are legally distinct and not bound by CSU investment policies.

Trustees were told at the meeting that about 0.04 percent of CSU investments, $3.2 million, were invested by mutual funds in Israel. The system owns approximately $20.8 million in corporate bonds in aerospace and defense industries as well as $30.6 million of investment exposure through mutual funds, which together make up 0.62 percent of the system’s total investments.

This information was also included in a recent FAQ webpage on the system’s website, which also has a new financial transparency portal.

“It is not possible to determine what part of total aerospace and defense investments are related to Israel, although it is extremely minimal,” the FAQ reads.

The system’s leaders signaled no plans to change investment practices.

“California State University does not materially invest in Israel-related stocks; there is no need to divest from positions that we do not own,” the FAQ states. “The CSU does not intend to alter existing investment policies related to Israel.”

Individual CSU campuses have had to respond to calls for divestment, as well.

Sacramento State University established a “policy on socially responsible investments” earlier this month which included the university and its auxiliaries, such as the University Foundation at Sacramento State, committing to “not having direct investments in corporations and funds that profit from genocide, ethnic cleansing, and activities that violate fundamental human rights.”

Sonoma State University President Mike Lee recently retired following a controversial deal with pro-Palestinian protesters on campus, which included a review of university investments and plans “to determine a course of action leading to divestment strategies that include seeking ethical alternatives.” News of his retirement came after he was placed on administrative leave regarding a campus-wide email he sent about the concessions.