Coal stocks are on the rebound, but California’s main public pension fund won’t see investment gains from that industry.
The California Public Employees’ Retirement System is almost entirely out of coal, according to a report it released Monday on its compliance with a 2015 law that compelled it and the California State Teachers’ Retirement System to divest from coal by July 1, 2017.
Coal stocks were a drag on CalPERS when the Legislature passed its divestment law.
According to CalPERS’ 2016 investment report, the pension fund’s coal stocks were worth about 10 to 50 percent of what it paid for them.
The worst performer at the time was Peabody Energy.
CalPERS owned about 46,000 shares in the company a year ago that were worth about $63,000. CalPERS had paid $13.5 million for those shares.
Democratic lawmakers who voted for the coal divestment bill characterized it as a stand against fossil companies whose industries contribute to global warming.
Source: Sacramento Bee