The Jewish Press is very concerned with the economic health of Israel. Does the state comptroller’s office encourage and/or support business with Israel? Does the BDS ( boycotts, divestment and sanctions )movement effect in any way how the comptroller’s office does business with Israel?
Israel Bonds are part of the New York State Common Retirement Fund’s Core Fixed Income portfolio. The fund currently holds $115 million in Israel Bonds. We are one of the largest public pension fund investors in these bonds. The opportunity to invest in Israel Bonds has offered the fund an attractive yield compared to its publicly issued sovereign counterparts, as well as an attractive yield compared to maturity-matched U.S. Treasuries. Israel Bonds have the added benefit of supporting a close ally and it’s important to maintain our ties to the lone democracy in the region.
Additionally, the fund is invested in a number of Israeli publicly-held corporations, and has investments in a number of U.S. and foreign-based companies currently doing business in Israel. We have not supported the BDS movement against Israel in any way, and our fund has consistently voted against shareholder resolutions calling on companies to curtail their operations in, or sales to, Israel.
How would you compare the current New York economy to those of other states?
New York State has performed well during the economic expansion of the past five years. The state, especially the downstate metropolitan region, has rebounded from the Great Recession more quickly than most of the nation. The job count on Long Island is well above its pre-recession peak, and New York City is enjoying especially strong gains.
Still, many regions of Upstate New York continue to face long-established economic challenges, and the state’s overall employment growth will likely lag the national trend this year, as it did in 2013. One of our most important sectors, the securities industry, has shed more than 10,000 jobs in New York City over the past three years. The state’s ability to generate jobs for working New Yorkers, and tax revenues for essential public services, will continue to depend in significant measure on broader trends in the national and international economy.
What steps is the comptrollers’ office taking, within the mandated parameters of the office, to ensure New York State’s future economic well being?
The Common Retirement Fund has two programs designed to invest in New York State. The In-State Private Equity Program partners with private equity managers to invest in New York State companies that require capital for growth or to refinance ownership. The program aims to provide investment returns consistent with the risk of private equity while also expanding the availability of capital for New York businesses. Since its inception in 2000, $1.25 billion has been committed to the program.
As of June 2014, $729 million has been invested in 282 companies, boosting state employment by more than 3,000. The investments have helped companies raise nearly $4 billion in additional capital for New York businesses.
The fund also invests in the New York Business Development Corporation (NYBDC), providing money to loan to New York small businesses for working capital, equipment or real property. The program has loaned $346 million to 1,042 small businesses located in all 62 counties across New York state. That includes more than $1 million in loans made to military veterans through a loan program specifically targeting former members of the Armed Forces.