Michigan State University’s Board of Trustees said it will review its financial investments but will not consider “divestment of any kind" from its investments in Israeli bonds.
“Divestment would conflict with stewarding the institution's financial health, would increase investment risks, limit returns and jeopardize the assurance their resources will continue to be available now and for future generations,” trustee and board finance committee chair Sandy Pierce said.
The statement comes after months of student protests over MSU’s investments in Israeli bonds following Israel Defense Forces’ ongoing assaults on Gaza.
Trustees promised to review the university’s investments at the board’s February meeting. Pierce said that review will conclude by May. Any recommendations the board’s finance committee makes in light of the review would have to be approved by the board at their next meeting, Pierce said.
“Investment decisions are based on acceptable risk and return and are aligned with supporting institutions’ financial health, and advancement,” Pierce said.
Both MSU’s undergraduate student government, ASMSU, and the Council of Graduate Students passed resolutions advocating for divestment earlier this month.
As of June 30, 2023, MSU has $218.1 million invested in three BlackRock funds: BlackRock Emerging Companies, BlackRock Strategic and BlackRock Systematic China Absolute Return, according to the MSU list of investments. Advocates for divestment argue that those investments, alongside an additional $363.8 million invested in BNY Mellon, are funding weapons manufacturers involved in the Israel-Hamas war.
Additionally, MSU has $236,114 invested in Israeli aid as well as $479,006 invested in weapons manufacturer Lockheed Martin.
MSU spokesperson Mark Bullion said that while MSU does own U.S. treasury bonds that were issued to fund Israeli aid, “the university purchased these bonds in March 2023, well before the current conflict.”
But even if MSU did decide to pull out of the Israeli bond, doing so would be “chaotic,” Assistant Vice President of Financial Management Jeff Rayis told The State News in February.
Financial experts say the complex web of outside asset managers and contractually-bound investments put the university in a bind — without much control over its own endowment.
Support student media! Please consider donating to The State News and help fund the future of journalism.
