{"id":747,"date":"2008-06-05T07:25:10","date_gmt":"2008-06-05T11:25:10","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=747"},"modified":"2016-09-20T03:23:47","modified_gmt":"2016-09-20T07:23:47","slug":"calstrs-lifting-ban-a-smoke-screen","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2008\/06\/05\/calstrs-lifting-ban-a-smoke-screen\/","title":{"rendered":"CALSTRS lifting ban a smoke screen…?"},"content":{"rendered":"

Sometimes, you just have to wonder what is the real reason for some things. Now the California State Teacher’s Retirement System is turning around a long standing ruling that prohibited them from investing in those sinfully smoky tobacco stocks.\"\"<\/a><\/p>\n

In theory, the eight year old ban was put on because of the worries about the pending lawsuits and the downside risk. But I just have to wonder if that was not really a smokescreen for the underlying desire to stay “socially-responsible.”<\/p>\n

The CALSTRS policy for investment responsibility<\/a> is detailed in their desire to invest according to their 20 Risk Factors. It seems that going back to these cancer and environmentally disastrous<\/em> stocks is a potential violation of their policy against “Environmental” and “Air Quality” concerns and now they face a new problem. How are they going to get past this policy?<\/p>\n

Even so, it seems that the policy does not necessarily help the fund from staying out of harms way… OH, how much damage was inflicted to the fund from sub-prime?
\nCalstrs may remove ban on tobacco stocks: report | Reuters<\/a><\/p>\n

(Reuters) – Calstrs, one of the largest U.S. pension funds, may remove its eight-year ban on tobacco stocks as risks in this industry have dimmed, the Wall Street Journal reported on Thursday.<\/p>\n

The board of the California State Teachers’ Retirement System began deliberating on Wednesday about adding tobacco stocks to its portfolio of more than $160 billion, the newspaper said.<\/p>\n

Calstrs divested itself of these stocks in 2000 because of various lawsuits against the industry and looming government regulation, but said missing out on a “market weighting” in tobacco stocks cost it $1 billion in returns in the past several years, the paper said.<\/p>\n

It was not clear how much money Calstrs planned to invest in tobacco companies, the newspaper said.<\/p><\/blockquote>\n

Stocks to consider: (RAI) (UST) (MO) (PM) (BTI)<\/p>\n","protected":false},"excerpt":{"rendered":"

Sometimes, you just have to wonder what is the real reason for some things. Now the California State Teacher’s Retirement System is turning around a long standing ruling that prohibited them from investing in those sinfully smoky tobacco stocks. In theory, the eight year old ban was put on because of the worries about the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12],"tags":[187,490],"class_list":["post-747","post","type-post","status-publish","format-standard","hentry","category-markets","tag-news","tag-stocks","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=747"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/747\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}