FOR IMMEDIATE RELEASE
Monday, June 30, 2003New report shows TIAA-CREF sold remaining World Bank bonds
Campaign commends pension fund giant for decision, encourages other funds to follow leadWASHINGTON, DC:

The World Bank Bonds Boycott campaign confirmed today that TIAA-CREF, the nation’s largest private pension system with more than $275 billion in assets under management, has sold its remaining holdings of World Bank bonds. The confirmation was made following the release of the TIAA Investment Profile 2002 this month which showed no holdings of World Bank bonds in that fund. “We commend TIAA-CREF for its decision to sell its World Bank bonds, and we want to encourage other pension funds to follow their lead,” said Neil Watkins, the campaign’s coordinator at Center for Economic Justice. TIAA-CREF acknowledged in November 2002 that it had sold holdings of World Bank bonds in three of its funds, but at the time it was unclear as to whether TIAA-CREF had sold a fourth bond holding, in the TIAA traditional account. “With the release of the TIAA Investment Report 2002, we are now able to confirm that TIAA-CREF is fully out of World Bank bonds,” said Watkins. In a statement on November 6, 2002, a TIAA-CREF spokesperson confirmed that the pension fund had sold off three of its bonds, citing financial reasons. “We have held World Bank bonds and we no longer do,” TIAA-CREF spokesman Patrick Connor told AFX News – Global Ethics Monitor at the time. “The only reason we don’t have them now is that the returns would not be as attractive as other investments,” said Connor. The World Bank Bonds Boycott campaign announced today that its next step would be to work with TIAA-CREF members to urge the fund to consider adopting a formal policy against purchasing World Bank bonds in the future. The campaign will also target other private and public pension systems around the U.S. to sell their World Bank bonds or at least adopt a policy against future investment. The World Bank Bonds Boycott urges pension funds and institutional investors to consider both financial and social risk factors associated with investing in World Bank bonds.

One financial risk factor to consider is that a growing number of World Bank borrowers have defaulted or are considering default on payments to the institution. The campaign has produced an analysis of risk factors associated with holding World Bank bonds, which can be obtained by contacting the organization directly.

The World Bank raises a majority of its funds by selling bonds.Launched by civil society organizations from more than 35 countries in 2000, the World Bank Bonds Boycott campaign has organized more than ninety institutional investors to commit not to buy World Bank bonds, including eight U.S. cities, dozens of religious institutions and labor unions, and ten investment funds in the US with assets under management of more than $16 billion. The boycott calls on the World Bank to cancel its debt claims against impoverished countries, stop promoting privatization and macroeconomic austerity programs, and stop funding oil, gas, mining and dam projects.

CONTACT:

Neil Watkins

World Bank Bonds Boycott

Center for Economic Justice

733 15th Street, NW, Suite 928

Washington, DC 20005

Tel: (202) 393-6665

Fax: (202) 393-1358