Frerichs Says State Will Continue to Invest in Israel
State Treasurer Mike Frerichs takes the oath of office for his second term in 2019. (Photo: Chicago Tribune)
Military and humanitarian criticisms of Israel, one of the United States’ top allies, has become a hot button issue for many activists on the left. It has led for louder calls for governments, like the state of Illinois, to stop investing in Israeli companies or government bodies, known as “Boycott, Disinvestment, and Sanctions,” or BDS.
Activists have targeted Democratic State Treasurer Mike Frerichs, who is responsible for investing state funds, including a high profile incident in 2024 where protesters caused a scene in front of his home at 3 a.m. while his family and young children were home.
Frerichs told me on the radio yesterday that even though Democratic frustration with Israel has picked up nationwide, he isn’t changing the state’s investment strategy.
“My job as chief investment officer is to get a good return for the state of Illinois, to preserve our capital, to diversify our portfolio. And by those metrics, Israel bonds are a good investment. They are some of the highest performing bonds in my portfolio. They have never defaulted. They diversify our portfolio. We’ve made these investments for over 20 years now, Democrats and Republicans alike,” Frerichs said. “My point is if you have a problem with the policies of a nation, if you have a problem with a with a company, that’s a question for the General Assembly. If they say, ‘Treasurer, you can no longer invest in Israel bonds,’ I won’t. But the General Assembly said, you can do this and we want you to get good returns. That’s what I’m doing.”
Frerichs’ office last year reported the state invested about $100 million in Israeli bonds, less than a quarter percent of the state’s investment portfolio.
Israel and the pro-Israel American Israel Public Affairs Committee, or AIPAC, became a hot button issue in many Democratic primaries in March, as AIPAC-affiliated committees spent millions on congressional candidates.
