New Jersey Division of Investment, Trenton, will liquidate an estimated $1 billion of its investments after Richard J. Codey, acting governor, signed legislation Thursday directing the state treasury to divest pension fund assets invested in companies doing business with Sudan, according to Tom Vincz, spokesman for treasurer John McCormac.
Mr. Vincz said the $70 billion pension system would reallocate the assets to other investments. He said the divestiture would occur over three years and added there is "no immediate decision in the offing as to how to reallocate the estimated $1 billion in holdings."
Under the new law, pension funds may not be invested in any foreign company with an "equity tie" to Sudan, although the restriction does not apply to companies providing humanitarian aid to the Sudanese people. An equity tie means manufacturing or mining plants, employees or advisers, facilities or an investment, fiduciary, monetary or physical presence of any kind.
The new law, which takes effect Aug. 1, makes New Jersey the first state to divest from Sudan.