Central Student Government at the University of Michigan approved a resolution Nov. 15, asking the university to appoint a committee to consider divesting from certain companies that do business with Israel.
Statement from several U-M board members re CSG vote on resolution A.R.7-019 (12/14/17)
The university has provided this response on Nov. 15, 2017:
We appreciate hearing from students.
The primary purpose of university investments (through the endowment) is to generate the greatest possible income, subject to the appropriate amount of investment risk, in support of the university’s missions of teaching, research, patient care and service.
The university also has an important commitment to each donor to invest their endowment gift with the goal of providing the most resources possible for the purpose they agreed to support.
To accomplish these goals, it is important that the university maintain an investment portfolio diversified across a full range of legally recognized entities. To do otherwise would be to increase our investment risk and decrease our investment returns.
For this reason, the university’s longstanding policy is to shield the endowment from political pressures and to base our investment decisions solely on financial factors such as risk and return.
This approach has been underscored consistently by university leaders, including the Board of Regents, most recently in December 2015. We do not anticipate a change in this approach or the creation of a committee.