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Restrictions Regarding Companies Boycotting Israel

Iowa Code chapter 12J prohibits IPERS from investing in certain companies that boycott Israel. This law became effective on July 1, 2016, but allowed public funds such as IPERS until March 1, 2017, to create its initial list of scrutinized companies.

The law requires IPERS to scrutinize the business activities of companies that publicly state they are participating in a boycott of Israel. IPERS uses the research services of ISS-Ethix to assist it in developing the list of scrutinized companies that is based on the criteria specified in Iowa Code chapter 12J. IPERS contacts the scrutinized companies and asks them to explain their business operations with Israel, or with persons doing business in Israel or territories controlled by Israel. IPERS is required to send or have sent a letter to each company it places on the Prohibited Companies List. IPERS updates this list quarterly, and companies can be added or removed based on the receipt of new information.

Once a company is placed on the Prohibited Companies List, IPERS cannot make any new investments in the company. IPERS is also required to divest of any securities issued by companies on the list that IPERS holds directly (direct holdings) within 18 months. If IPERS owns an interest in a mutual fund that holds securities (an indirect holding) of a company on the Prohibited Companies List, the IPERS Investment Board will decide whether divestment is warranted.

Companies That Boycott Israel: Companies That Boycott Israel Prohibited Companies List

IPERS maintains a list that contains estimates of holdings in prohibited companies. 

Companies That Boycott Israel: Companies that Boycott Israel Holdings List

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