CU, PERA among state institutions divesting Sudan stock
David Milstead, Rocky Mountain News
Wednesday, May 30, 2007
Colorado institutions already are preparing to get rid of stock in companies that do business in Sudan.
The University of Colorado adopted a Sudan divestment policy in December, and Colorado PERA, the state's largest pension fund, is complying with a new state law that requires it to dump investments related to the Darfur genocide.
Both are working from guidelines developed by the Sudan Divestment Task Force, which identifies companies that benefit from doing business in Sudan.
CU Treasurer Don Eldhart uses the task force's list to tell Vanguard, its outside money manager, which of its funds contain prohibited companies.
CU has gone from five or six companies on the watch list down to two.
The CU policy allows the school to divest as long as it doesn't cause investment losses.
PERA has no such luxury.
When Gov. Bill Ritter signed the Sudan divestment bill April 19, it started a 90-day clock for PERA to identify the companies.
If the company fails to cooperate, PERA must divest within 15 months.
The pension fund has $40 billion in assets. General Counsel Greg Smith estimates less than $200 million may be in companies that run afoul of the Sudan divestment movement.
The University of Denver also adopted a divestment policy in April.
David Milstead is finance editor of the Rocky Mountain News. He can be reached at milstead@RockyMountainNews.com or 303-954-2648.
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