International Investment Restrictions by State Law

Compliance with Statutory Investment Restrictions

As principal fiduciary of the Connecticut Retirement Plans and Trust Funds (CRPTF), Treasurer Shawn T. Wooden believes that his first obligation is the long-term economic interest of the more than 212,000 plan participants and retirees. That responsibility is consistent with his view that corporate governance, including traditional governance issues such as board independence, sustainability factors such as climate change, and global risk factors such as terrorism and human rights, is imperative to the long-term value and success of CRPTF investments. That view finds ample support in Connecticut law, which states that among the factors to be considered by the Treasurer, with respect to all securities, may be the social, economic and environmental implications of investments. In addition, the Treasurer is directed to consider the implications of investments in relation to the foreign policy and national interests of the United States.

In addition to the broad fiduciary authority granted by law, Treasurer Wooden supports the legislative statutes governing investments in companies doing business in Sudan, Iran and Northern Ireland, where issues of human rights and/or global terrorism have raised particular concern. Treasurer Wooden's also supports the approach to engage companies and seek to use the CRPTF's influence as a shareholder to affect corporate behavior. As such, Connecticut has not adopted mandatory divestment laws instead, retaining final authority with the Treasurer on the matter of whether divestment is warranted. This approach also accords appropriate deference to the federal government's supremacy in areas of international relations and foreign policy. Connecticut's Compliance Policy on Statutory Investment Restrictions is Appendix C, Section 1 of the Investment Policy Statement.

2020 Interim Report to the Investment Advisory Council:
Interim Report on the Connecticut Retirement Plans and Trust Funds' Activities under Various Statutory Investment Restrictions

Sudan

Connecticut's Sudan Law, passed in 2006, was created in response to the genocide perpetrated against the people of the Darfur region of that country. Since 2006, Connecticut has engaged with dozens of companies, using its influence where possible to encourage companies to act responsibly and not take actions that promote or enable human rights violations. The Office of the Treasurer has determined, for a limited number of companies, that divestment and prohibition of future direct investment was warranted, based upon statutory criteria. Annually, the Treasurer reports to the Investment Advisory Council on activities of the past year under the Sudan law.

Sudan law
Sudan Prohibited Companies

Iran

Connecticut's Iran law (a remnant from the 1980s hostage crisis during the Carter presidency) was amended in 2011, bringing the statute up-to-date in response to concerns over that country's nuclear development program and support of international terrorism. Like the Sudan law, the amended Iran law provides for engagement with companies doing business in Iran, seeking to ensure that the company's conduct does not facilitate Iran's nuclear development or support for terrorist groups. The Treasurer has determined, for a limited number of companies, that divestment and prohibition of future direct investment was warranted, based upon statutory criteria. Annually, the Treasurer reports to the Investment Advisory Council on activities of the past year under the Iran law.

Iran law
Iran Prohibited Companies