Press Releases

Controller Yee’s Statement on Question of Divestment

PR22:05
3/1/2022
Contact: JENNIFER HANSON
(916) 324-2709

SACRAMENTO—State Controller Betty T. Yee today issued the following statement on questions of whether California’s public pension funds should divest from Russia:

“California’s pension funds should and will work closely with our investment managers and stay vigilant for opportunities to move away from Russian investments that make sense from an economic perspective. Drastic market changes brought on by global sanctions heighten this process of rebalancing, producing investment reallocations faster and more economically than divestment, which in past experience has not proven effective.

Pension fund board members have a fiduciary responsibility to carefully review the potential financial impacts before making any definitive statement about divestment. Even those calling most loudly for immediate divestment have been unable to articulate how that could be done, or how they would avoid unwanted consequences such as the further enrichment of Russian oligarchs or sale of assets to other nations with a record of human rights violations. 

Anyone with a conscience opposes Russia’s unprovoked attack on Ukraine and wants all legal steps taken to restore peace. Virtue signaling with unrealistic calls for immediate divestment will not divorce us from our fiduciary duty to protect the retirement income security of California state employees and teachers. CalPERS and CalSTRS are committed to following all relevant federal sanctions that can more quickly bring this crisis to a peaceful resolution.”

As the chief fiscal officer of California, Controller Yee is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Elected in 2014 and reelected in 2018, Controller Yee is the tenth woman elected to a statewide office in California’s history. Follow the Controller on Twitter at @CAController and on Facebook at California State Controller’s Office.

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