UNM invests in major tobacco companies

The University of New Mexico has investments in two major tobacco companies, according to statements obtained by the Daily Lobo via public records requests.

The companies are Philip Morris International and British American Tobacco, according to UNM Asset Summary Statements from May-July. In 2023, PMI and BAT had the first- and second-highest net sales out of all tobacco companies worldwide, according to Statista. They both manufacture, market and sell cigarettes and other tobacco products.

Products that contain tobacco are addictive and deadly. Tobacco kills longtime users and is a leading cause of death, illness and impoverishment, according to the World Health Organization.

PMI products include cigarette brands Marlboro, Chesterfield, L&M and smoke-free nicotine product Zyn, according to its website. BAT products include cigarette brands Lucky Strike, Camel, Newport and Natural American Spirit, according to its website.

The companies are two of 179 fixed-income securities, known as bonds, that UNM held as of Sept. 9. Bonds are a type of investment in which the investor lends money to a corporation in exchange for regular interest payments and a return of the investor’s money once the bond reaches maturity, according to Forbes.

The exact amounts UNM invests in PMI and BAT are unknown. These figures were redacted on the Asset Summary Statements. Custodian of Public Records Robert Tafoya cited “trade secrets” as the reason.

In response to an inquiry about the amounts, UNM Chief Marketing and Communications Officer Cinnamon Blair wrote in a statement to the Daily Lobo that details about investment and fund performance cannot be publicly disclosed because of contractual obligations.

UNM’s bonds are monitored by investment advisors from the firm Aon, according to Blair. The bonds — unlike endowment funds, which are managed by the UNM Foundation — are overseen by the University Debt and Investment Advisory Committee, according to Blair.

The Daily Lobo requested an interview with committee Chair Teresa Costantinidis. Only Blair responded to this inquiry.

UNM manages its bonds in accordance with Regents Policy 7.21, which reads that “individuals responsible for investment decisions shall exercise judgment, care, skill and caution to invest and manage funds as a prudent investor would.”

According to New Mexico State University economics professor Christopher Erickson, the University choosing not to invest in a specific company would likely not have much impact on the company, as there will always be someone else willing to invest in it. However, such decisions make a statement about the University’s principles and concerns, Erickson said.

If UNM chose not to invest in these companies, he said, it would send “a message — to the community, to the students, to the employees — that the University is aware of the social consequences of their investments, and that’s a valuable thing to do.”

The tobacco industry is commonly excluded from investment portfolios that factor in Environmental, Social and Governance considerations — a form of “socially-driven investing” — according to Erickson. The UNM Foundation, which oversees UNM’s endowment funds, uses ESG considerations when investing, according to its policy. No ESG or other ethical considerations are mentioned in UNM’s bond policy.

UNM is a smoke-free and tobacco-free campus, according to Policy 2250.

“The University of New Mexico is committed to wellness, prevention and providing a healthful environment in which to learn, work and visit,” the policy reads.

Cigarette smoking can cause pneumonia, according to Dr. Michelle Bardack, a primary care physician at UNM Student Health and Counseling Center.

While the symptoms of tobacco use become more present in older long-term smokers, younger smokers can demonstrate a persistent cough that results from a weaker immune system, Bardack said.

“I think that it’s frustrating as a provider who has made a commitment to help people live a healthy life … I don’t think it’s appropriate for UNM — who wants to keep the student body healthy, to decrease hospitalizations across the street — to (invest) in the tobacco industry in general,” Bardack said. “There’s nothing good that comes from it.”

Lily Alexander is the editor-in-chief of the Daily Lobo. She can be reached at editorinchief@dailylobo.com or on X @llilyalexander

Nate Bernard is the news editor for the Daily Lobo. He can be reached at news@dailylobo.com or on X @natebernard14

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