Connecticut Considers Divesting From Gun Manufacturers

March 02--State Sen. Gayle Slossberg said Thursday she was "surprised" to hear that the state still had investments in gun companies and that she will push to divest from those companies in light of another mass shooting.

State Treasurer Denise L. Nappier announced late Thursday that she is considering divesting the state's small amount of stock in gun companies currently in its pension portfolio. Nappier said the assets of the Connecticut Retirement Plans and Trust Funds are invested in five companies that manufacture guns, with a total investment in equities and fixed income valued at roughly $16.5 million or about 0.05 percent of the total portfolio.

Given that the Sandy Hook Elementary School massacre happened in Newtown five years ago and that the state has been on the forefront of stricter gun laws, Slossberg said, she didn't expect to hear that the state's pension was invested in gun companies.

"The lack of response by the gun companies to these mass shootings means it is important for the state to use its financial power to make changes," Slossberg said. "I am surprised that we own stock in gun companies and look forward to discussing that issue more with colleagues and our treasurer."

In a letter to Slossberg, Nappier identified the five companies and the value of the state's investments:

* CIE Financiere Richemont SA -- $7.19 million

* Daicel Corp. -- $1.65 million

* Olin Corp. -- $915,255

* Orbital ATK Inc. -- $784,437

* Vista Outdoor Inc. -- $4.04 million

"So many of us in Connecticut and beyond have seen firsthand the destruction wrought by assault rifles and the wave of gun violence that has plagued our schools and communities across the nation. It is high time to prevent access to dangerous weapons and ammunition by those who would misuse them," Nappier said. "Should the proliferation of gun violence persist, and further compromise the safety of our young people, our communities and our long-term shareholder value, following a period of stepped up shareholder activism I will proceed to divest or not make further investments in gun companies as the most prudent course of action."

Slossberg, a Democrat from Milford, had sent a letter to Nappier on Feb. 26 asking her to identify the investments the state has in gun companies and the process to divest.

Nappier said she has a fiduciary duty to balance the risk and return of the state's retirement funds.

"I believe that common sense gun control measures and whether investment in gun companies will deliver returns that meet the long-term interests of the plans beneficiaries are really two sides of the same coin, neither of which can be ignored," Nappier wrote. "I am charged with making investment decisions in the best interests of the beneficiaries that depend on these assets for retirement. Fiduciary duty requires that I take into account not only the appropriate balance between risk and return, but also the long-term viability of the investment itself."

Since the latest mass shooting two weeks ago at a high school in Parkland, Fla., several companies, including Dick's Sporting Goods and Walmart, have announced they will no longer sell assault rifles.

Survivors of the shooting have criticized politicians for not banning the assault rifles as well as gun companies that make and sell them.

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