Unfunded Pension update

Many pension funds decided a long time ago to be political machines and social engineer by their investment dollars (without the approval of the pensioners I might add); they directed a portion of their portfolio towards "socially redeeming" companies and away from others like tobacco. Selling tobacco interests was a big financial mistake which has caused pensioners greatly.

CalPERS sold off all tobacco related holdings from their portfolio and did little to affect tobacco growing, distribution, etc. but did cost themselves. Since then, the AMEX Tobacco Index has outperformed the S&P 500 by more than 250% and the Nasdaq by 500%. That one decision cost pensioners more than $1 billion dollars according to a 2008 report by CalSTRS.

I'm not sure what the current impact those decisions have had but it can't have been any better.