CSU chooses not to divest from Israel, only making indirect investments

California State University (CSU) confirmed on Tuesday that it has no direct investments in companies that could benefit from Israel’s presence in the Palestinian territories and the Gaza conflict. However, it does have some indirect holdings through mutual funds.

This disclosure comes after pressure from pro-Palestinian student and faculty protests demanding CSU to divest from such companies.

Notably, CSU officials reiterated that they will maintain their stance and not divest from the indirect investment, aligning with the University of California’s position. According to a statement on the CSU website, “The CSU does not intend to alter existing investment policies related to Israel.”

Previously, the 23-campus university system had announced in April that it avoids investing in direct equities of any companies, regardless of location. During the board of trustees meeting, officials disclosed that there are indirect investments in Israel-based firms through mutual funds, amounting to $3.2 million or 0.04% of CSU investments.

A list of funds CSU invests in was presented in a report to the trustees. However, individual campuses and related foundations may have separate holdings not included in this report. The university system’s financial transparency portal provides detailed financial information for each campus.

On a newly published page on CSU’s website, it states, “Consistent with their legal structures, CSU investments and auxiliary investments are distinct from one another.”