Indiana State Treasurer Daniel Elliott says Israeli bonds remain a good investment. Earlier this year, Elliott increased the state's holdings in Israeli bonds to $110 million.
During a visit to Northwest Indiana last week, Elliott said the investment has been "fantastic" from a financial standpoint. “It’s also important because we need to be able to support our allies," Elliott added. "They’ve always been very supportive of us. We should be supportive of them. And I’m not going to shy away from that. That’s something I’m very proud of.”
While Indiana has been increasing its investment in Israel, it's taken steps to limit investments that consider environmental and social impacts, known as ESGs. A 2023 state law aims to cut ties with financial institutions with certain ESG commitments.
Elliott said the two things are completely different. “When we look at ESG, they’re not performing well," Elliott said. "ESG is using a different measurement other than return. So if we look even at our investments in Israel, it’s a good return. It’s, in fact, one of our better-performing returns.”
He said most Hoosiers support the state's investment in Israel. Still, critics last year said it amounted to supporting the genocide of Palestinians.
Elliott said it's fine to disagree, and he encourages discussion. “Then, I will say to them, let’s look at the fact that this is a really good investment," Elliott added. "We're getting a great return, and ultimately, that is my main duty – is fiduciary, to make sure we’re getting a good return.”
He said a big goal is to make sure state employees are financially secure in their retirement.