New York’s Secretary Candidate Promises to Reinvest in Israeli Bonds

The top contender for New York City’s Secretary position has announced plans to reallocate his multimillion-dollar urban pension fund back into Israeli bonds, a move notably absent under the current Secretary, Brad Lander.

When Lander assumed office in 2022, New York’s city pension fund for workers and retirees included approximately $39.9 million in Israeli bonds. However, when these bonds reached maturity, Lander chose not to reinvest in them. This decision marked a departure from a practice that has been ongoing since the 1970s.

Manhattan’s borough president and Democratic candidate for Secretary, Mark Levine, has stated that he would restore investments in Israeli government bonds if elected. “We have a globally diversified portfolio, which should include investments in Israeli bonds,” Levine noted during a recent primary debate. He highlighted that such assets have yielded strong dividends for 75 years.

“Currently, we are the only pension fund in the nation without such investments,” Levine remarked, emphasizing the importance of careful asset management for global diversity. He criticized Lander’s choice, which led to limited investment options. Lander faced backlash for his stance during his initial campaign.

In a response to the criticism he received, Lander stated that his decision was politically driven and not aligned with fiduciary responsibilities. He argued that past directors invested pension funds in Israeli bonds for political reasons rather than sound financial considerations.

New York City’s historical ties to Israeli bonds date back to 1974, when a significant investment was made under former City Secretary Harrison Goldin, starting with $30 million through a pension fund for educators.

In a letter addressing the criticisms, Lander maintained that the city must manage its investments impartially. He noted that the choice to invest in Israeli bonds exclusively, without similar bonds from other countries, was a political choice rather than a financial one.

Lander, who identifies as Jewish and a self-proclaimed Zionist, stated, “We handle investments in Israel on par with other nations. It’s not about making Israel an exception or treating it differently.” He expressed opposition to movements that suggest otherwise.

During this controversy, Lander accused Mayor Eric Adams of utilizing the Israeli bond divestment as a strategic ploy in his reelection efforts.

Critics, including Lander’s former director Scott Stringer, have pushed back against Lander’s stance, suggesting that he is losing credibility in distancing himself from the value of Israeli bonds. Stringer expressed frustration over Lander’s failures to recognize the historical significance and reliability of these investments.

In summary, Israeli bonds have proven to be reliable investments, historically yielding an average annual return of around 5%. Comparatively, the New York state pension system has already invested over $360 million in bonds tied to Israel, showcasing their perceived worthiness in a diversified investment strategy.