Pension fund joins call for gun makers, dealers to embrace safety
TALLAHASSEE — Florida has joined a coalition of major pension funds and investment companies that have adopted a set of principles aimed at encouraging gun manufacturers and retailers to adopt safety and transparency measures.
In signing the Principles for a Responsible Civilian Firearms Industry last month, Florida joined more than a dozen public pension funds and investment companies that have adopted the document. The funds and companies managed nearly $5 trillion in assets as of the fall, according to a mid-November statement from the group.
“We believe that enterprises involved in the manufacturing, distribution, sale and enforcement of regulations of the firearms industry are well-positioned to support pragmatic transparency and safety measures that contribute to the responsible use of firearms,” the document said.
The agreement said gun companies can apply the principles, which include measures such as background checks and making guns easier to trace, “in a manner they deem appropriate.”
The document also acknowledged regulations already faced by the industry but said “more can be voluntarily done by companies within these existing regulatory boundaries to advance safety and the responsible use of civilian firearms.”
Ash Williams, executive director of the State Board of Administration, which oversees the state pension fund and other investments, said the agreement carries no mandates for gun-related companies. But it is designed to raise awareness of issues that could affect the value of investments in the firearms industry, he said.
“Our concern is motivated very simply by one thing, as fiduciaries anything that poses a risk to the value of the assets that we own on behalf of our beneficiaries, we want to make sure we’re managing it properly,” Williams said.
Williams said the adoption of the principles is not part of any effort to restrict constitutional gun rights.
“Many of us at the board are weapons owners and some of us have concealed-carry permits. This not about challenging the Second Amendment,” he said.
With a main Florida pension fund of more than $160 billion and total investments being managed by the Board of Administration of more than $200 billion, Williams said the firearms-related investments held by Florida are “very small” in comparison to other investments.
The effort to adopt the firearms-industry principles was led by the California State Teachers Retirement System, which with about $229 billion in assets as of Sept. 30 is the largest educatorrelated pension fund in the world.
“This is not a political statement about constitutional rights,” Christopher Ailman, chief invest-
ment officer for the California fund, said in a statement. “It is a joint assertion by all of the signatories that investors have a stake in advancing public safety.”
Pension funds from Oregon, Maine, Connecticut and Maryland have also signed the agreement. Several investment companies, including Nuveen and State Street Global Advisors, are supporting the principles.
Williams said there is an “ample history” of companies that have responded, both well and badly, when their products present safety risks.
He said a good example was Johnson & Johnson’s response when tampering of Tylenol products became a problem. He said the company responded immediately, including creating a more secure package.
“Guess what? It solved the problem and the value of J & J has been strong ever since,” Williams said. “Plenty of people have had to deal with product liability issues. They just need to be attentive.’’