The CalPERS board voted to oppose state legislation that would require the $241.7 billion pension fund to divest itself of investments in certain international companies with active operations in Iran, confirmed Pat Macht, a CalPERS spokeswoman. If enacted, the bill, currently in the state Assembly, would prohibit the California Public Employees’ Retirement System, Sacramento, from investing in international companies with active business operations in Iran, which include those in defense, oil, nuclear or natural gas sectors in the Mideast nation.
“International assets are a fifth of our portfolio,” said Charles Valdes, investment chairman, in a news release. “This bill would mean a potential divestment exceeding $8 billion — $6 billion in equities and $2 billion in bonds. Our staff analysis shows that if we had not invested in some 50 affected companies over the past one, three, and five years, the loss would have been about $725 million.”
