(August 6, 2010) – Massachusetts Governor Deval Patrick has signed legislation that will force the state pension fund to divest from companies supporting Iran’s oil industry.
According to the legislation, the Massachusetts Pension Reserve Investment Board (MassPRIM) – which manages $42 billion on behalf of public entities in the Bay State – has one year in which to hire an independent research firm to conduct a study of its holdings and divest from any companies that invest in the Iranian oil industry. The MassPRIM board must also update the list of prohibited companies on a quarterly basis, the law stipulates.
The move does not come as a surprise. Early last month, President Obama signed the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 into law, which encouraged state and local funds to divest from the Iran.
This is not the first restriction on investments for MassPRIM, which must already follow similar rules for the Sudan and for tobacco companies. Similarly, other funds – including the $110 billion New York State Common Fund – are actively pursuing a strategy of excluding Iranian holdings from their portfolios.
According to a release, State Treasurer Tim Cahill, who chairs MassPRIM’s board, supports the move. Cahill is running for Governor as an Independent.
To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>