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The Boycott of Israel Nobody Is Talking About


(New York Jewish Week) Scott Shay - Jewish foundations and federations unintentionally boycott investments in Israel. Jewish endowments actually invest more in Qatar, a primary funder of Hamas, than in Israel. Endowments seek to maximize income in order to maximize grants. Granting philosophy should be wholly separate from investment policy, they say. Based on this approach, Jewish endowments rely on the advice of investment consultants alone. When a consultant is asked to evaluate an Israel investment opportunity specifically, they almost always find a reason to say no. Generally, this is not a case of malice. Rather, it is because considering Israel requires time and money, Israel is perceived as controversial and no Jewish endowment is insisting. As a result, the typical Jewish endowment invests four times more in places such as Qatar, the United Arab Emirates and Pakistan. The irony is that Israel is often a better investment choice than many of the countries that enjoy greater representation in the indexes whose funds consultants usually recommend as part of any endowment portfolio. Israel has had superior performance during and after the worldwide financial crisis compared to most countries. The problem can be fixed. Jewish endowments should invest according to Jewish values. This doesn't mean accepting lower returns; studies have indicated that in some cases socially conscious investing provides superior returns, but in any event does not need to lead to lower returns. There are about $90 billion in endowment funds in Jewish organizations across the U.S. No more than a handful have taken any meaningful action to align their values with their investments. Jewish endowments should insist that consultants agree as part of their contract to review Israel-related investments. The writer, co-founder and executive chairman of Signature Bank, is also chairman of the investment committee of the Elah Fund, a private equity fund that invests in Israel.
2017-03-08 00:00:00
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