ADL-JLens Report: BDS Divestment Could Cost NYC Pension Funds $37 Billion Over Decade
The Anti-Defamation League and its affiliate JLens released a report estimating that adopting Boycott, Divestment, and Sanctions (BDS) strategies aligned with Israel divestment could cost New York City's five pension funds approximately $37.55 billion in forgone returns over 10 years. The analysis compared historical performance of diversified portfolios versus those excluding 47 major US companies targeted by the BDS movement, finding a roughly 2 percentage point annual underperformance gap. The report is significant because it quantifies potential financial consequences of divestment policies that have gained support among some NYC officials and activists.
The Anti-Defamation League and its affiliate JLens released a financial analysis examining the potential impact of BDS-aligned divestment strategies on New York City's pension system, which collectively manages over $300 billion in assets and is the fourth largest public pension system in the US. The report compared 10-year historical performance data between a broadly diversified large-cap US equity portfolio and one excluding 47 major American companies targeted by the BDS movement, including Alphabet, Amazon, and Microsoft. The analysis found that the BDS-excluded portfolio underperformed by approximately 2 percentage points annually, which when compounded over a decade could result in $37.55 billion in forgone value across the five NYC pension funds. The report breaks down projected losses by fund: Teachers' Retirement System ($15.09 billion), NYC Employees' System ($10.91 billion), Police Pension Fund ($7.13 billion), Fire Pension Fund ($3.02 billion), and Board of Education Retirement System ($1.41 billion). ADL leadership framed the findings as evidence that BDS-aligned divestment represents poor fiscal policy, while the report's methodology was reviewed by Columbia University law professor Joshua Mitts.
What's missing
The article does not include response or counterarguments from BDS advocates, divestment supporters, or independent financial analysts who might dispute the report's methodology, assumptions, or conclusions. The report's assumption that historical performance gaps will persist over the next decade is not independently verified. No information is provided about whether NYC pension funds have actually considered or adopted BDS-aligned strategies, or the current status of any such proposals.
What different sources said
- The Jerusalem PostRight
BDS could cost NYC taxpayers $37 billion, ADL-JLens analysis finds
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