Oregon Treasury, other states push gun safety reforms on firearm manufacturers

Oregon has joined a coalition of states intent on changing how they invest money in the firearms industry to push gun safety reforms.

The move by the Oregon State Treasury — which manages the multi-billion-dollar Oregon Public Employees Retirement Fund — reflects an increased level of scrutiny for gun-related manufacturers not just from the halls of Congress, but from low-profile corners of state government that seek to influence how the industry does business. 

The coalition's investing principles support universal background checks, safer technology for firearms and training for gun retail employees.

The principles aren't a set of rules that forbid any investment in the industry. Instead, they are a broader framework for investors doing business with companies, with an eye toward diminishing the risk of investments and improving business practices tied to gun safety. 

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Oregon joins California, Connecticut, Florida, Maine and Maryland in the coalition. In their entirety, member states manage more than $4.8 trillion, much of it for government retirees. 

“As a fiduciary of a large, diversified investment portfolio, we frequently engage companies and encourage them to operate in ways that increase the odds of strong long-term returns and to reduce future investment risks,” Oregon State Treasurer Tobias Read said in a statement. “Without (these gun safety principles) we do not believe the current path is sustainable.” 

The Oregon pension fund's investment in the firearms and munitions manufacturing sector is a tiny part of the state's overall portfolio — just a fraction of 1 percent. The fund has positions in four companies with a net value that was less than $7 million in November 2017, when the state last ran a report on its holdings in the firearms sector.

At the time, the fund's total assets were about $78 billion, Treasury officials said.

The largest individual firearms-related exposure was $5.3 million in Olin Corp., a chemical company with a division that manufactures ammunition. The other companies the state has shares in are Vista Outdoor, Sturm, Ruger & Co. and American Outdoor Brands. 

Those positions are through co-mingled investments that track broad stock market indices, according to the treasurer's office. 

Kevin Starrett, director of the Oregon Firearms Federation, took news of the state treasurer's move in stride. He said Read's actions are "typical of Oregon and Democrats."

"They think if we don't invest in companies that are firearms-related, we're going to hurt them somehow, but all they do is make their stocks available to other people like me," Starrett said. "It's what Oregon Democrats are about. It's symbolism and show and amounts to nothing."

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The California State Teachers' Retirement System has coordinated the development of the effort, called Principles for a Responsible Civilian Firearms Industry. 

The principles call for manufacturers to support and develop technology that makes firearms safer and easier to trace; training and education programs for owners focused on firearm safety; best practices for complete background checks; and education and training for employees so they can spot irregularities during sales, audit inventory and help law enforcement.

Groups signing onto the coalition acknowledge they support the Second Amendment, but also have a duty to constituents who rely on them to make long-term investment decisions. 

The principles are about engaging with the companies to improve long-term results as a fiduciary for the fund, not divesting of the investments, said James Sinks, a spokesman for the treasurer's office.

Contact the reporter at bbotkin@statesmanjournal.com or 503-399-6687.