Massachusetts treasurer Steve Grossman has reportedly asked the state’s pension fund, Pension Reserves Investment Management, to review any investments in gun companies in response to the Newtown, Conn. shooting on Dec. 14.
Grossman reportedly did not call for divestment from gun companies, saying it’s the pension fund’s duty to maximize returns, but he will not ignore the values of Massachusetts residents.
The request follows California treasurer Bill Lockyer statement to reporters on Dec. 17 that he believes neither California State Teachers’ Retirement Systems (CalSTRS) or California Public Employees’ Retirement System (CalPERS) “should have any investments in the makers of guns that are illegal in California, especially when those guns have been used to kill 20 innocent children and six innocent adults.”
As Mergers & Acquisitions reported on Dec. 18, private equity firm Cerberus Capital Management LP announced that it is selling its interests in Freedom Group Inc., which owns Bushmaster Firearms International. Bushmaster makes the AR 15 rife, one of the guns allegedly used in the Dec. 14 Sandy Hook Elementary school massacre.
Cerberus’ announcement came after a CalSTRS spokesperson told reporters that the pension fund was “examining the Cerberus investment to determine how best to move forward given the tragic events of last Friday.”
For more, see Mergers & Acquisitions' sister publication, Investment Management Mandate Pipeline's, "PRIM Chair Calls for Gun Investment Review."