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UT's investments remain in Sudan
Investors debate true influence of political, social issues on policy
By Maya Srikrishnan
The University of Texas Investment Management Company has refused to act on students' calls to divest from Sudan.
The management company is the first corporation formed by a public university and oversees investments in UT funds, Texas A&M University funds and other assets. At the Oct. 12, 2007 Board of Regents meeting, member of The White Rose Society and sociology junior Natasha Levinsohn proposed that UTIMCO funds be withdrawn from Sudan. The society opposes genocide and monetary investments that could fund genocide in foreign countries. More than 1,000 students, faculty and staff signed the society's petition and wrote letters to the UT System Board of Regents calling for UTIMCO to divest from the country, Levinsohn said in a letter to board Chairman H. Scott Caven. Bruce Zimmerman, chief executive officer of UTIMCO, said in a letter to Caven that his concerns stemmed mainly from the fear of ramifications of "social investing" and the small amount of funds UTIMCO holds in Sudan-related companies. "The primary issue here is whether social and political situations should factor into our investment policy. We think that is a very dangerous precedent, a slippery slope," Zimmerman said. "It's not about Sudan; it's about every issue in the world that every interest group in the world might want to try to bring pressure to bear through influencing investment policies." Zimmerman listed alcohol, tobacco, pornography, nuclear proliferation and environmental concerns as examples of issues that may contribute to a slippery slope, in his letter to Caven. "But the thing is, is that this campaign shouldn't really have that slippery slope effect," Levinsohn said. "Those kinds of activists have always been around and will always be around, so this wouldn't change that, in my opinion." Zimmerman said whether these issues will always be around is questionable. "There was a period of time in the U.S. when alcohol was banned," he said. "It was in the constitution and so to say, 'Well, this issue has always been around, it will always be around,' … gosh, I don't know." The Texan strives to present all information fairly, accurately and completely.
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Viewing Comments 1 - 5 of 6
Eric Reeves
posted 1/23/08 @ 11:00 AM CST
To be sure, there will be some who offer a form of ?slippery slope? argument: ?genocide in Darfur is certainly horrific, but divestment is not a strategy that we can endorse as a matter of law---we can?t ethically screen our investments without risking making every political cause a potential occasion for a divestment campaign. (Continued…)
Scot
posted 1/23/08 @ 1:08 PM CST
I would prefer UTIMCO did not have investments in an unstable country for many reasons. The risk the money will be lost among them.
But as I understand the rules, UTMICO operates without any requirements of faculty or student approval. (Continued…)
Colin Lowenberg
posted 1/23/08 @ 4:54 PM CST
The arguments against divestment from Bruce Zimmerman would seem appropriate for an introductory course to finance, not policy arguments from the financial maven who manages UT's billions. (Continued…)
Leran Minc
posted 1/23/08 @ 5:12 PM CST
To whom is the University of Texas Investment Management Company known as UTIMCO responsible?
As part of the campaign to get our state to divest the campaign to get UTIMCO to divest, I obviously have my own opinions about what Bruce Zimmerman calls "social investing". (Continued…)
Natasha Levinsohn
posted 1/23/08 @ 7:35 PM CST
I would like to thank the Daily Texan for bringing attention to this issue which is important to many in the university community. "Fiduciary responsibility" is a phrase that is used to justify many actions by investment management companies. (Continued…)
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