California State Treasurer Phil Angelides today proposed that CalPERS and CalSTRS divest their holdings in and stop doing business with companies that have expatriated themselves in Bermuda and other offshore locations. Companies such as Tyco International "have flouted U.S. taxation and legal protections for investors by reorganizing offshore, according to a press release from the treasurers office.
The $149 billion California Public Employees Retirement System and the $97 billion California State Teachers Retirement System, both in Sacramento, collectively hold $752 million in investments in publicly held expatriated U.S. companies, whose ranks include Accenture, Cooper Industries and Ingersoll-Rand. The CalSTRS board will consider Mr. Angelides proposal at its Oct. 2 investment committee meeting, said Sherry Reser, CalSTRS spokeswoman.
Mr. Angelides extended the ban to Californias $45 billion Pooled Money Investment Account, which he administers.