New York Could Lose $37 Billion From Israel Boycott, ADL Report Says
Archive | Photo: Regavim Movement
New York Could Lose $37 Billion From Israel Boycott, ADL Report Says Sivan Yehezkel, 12 minutes ago
A new report by the Anti-Defamation League reveals that divesting from pro-Israel companies could cost New York pension funds $37.55 billion over the next decade. Mayor Zohran Mamdani supports the BDS campaign, raising concerns about the implementation of boycott policies. The loss could lead to cuts in essential services.
A new report published yesterday, Wednesday, estimates that avoiding investments in companies that have business ties with Israel, as part of campaigns associated with BDS, could lead to a cumulative loss of more than $37 billion for New York City pension funds and taxpayers over the next decade. The report, published by the Anti-Defamation League (ADL) and JLens, says politically driven investment policies could hurt public returns, especially when they include boycotts of major American companies.
Zohran Mamdani | Photo: Shutterstock
According to the analysis, two hypothetical portfolios of large-cap U.S. stocks were compared, one including 47 leading companies with business activity in Israel, and the other an identical portfolio excluding those companies targeted by the BDS campaign. The report found an annual performance gap of about 2%, with a return of 13.7% in the portfolio that included the companies, compared with 11.7% in the portfolio that excluded them. When this gap is applied to the investment volumes of the city pension funds, it yields an estimated potential loss of about $37.55 billion.
According to the report, these return gaps could create budget pressure on New York City, whether through higher employer and taxpayer contributions, or through cuts to city services or tax increases.
Archive | Photo: Amir Levy, Flash 90
New York's pension system includes five major funds, among them those for teachers, municipal workers, police, and firefighters. Former comptroller Brad Lander led a move to reduce exposure to Israeli bonds as they matured, while current comptroller Mark Levine has said he intends to renew investments in Israeli bonds and companies.
The report calls on New York decision-makers to avoid investment policies that it says are driven by political considerations, and to focus primarily on long-term financial considerations.
