New York Common, NYCERS and Penn SERS sell their Russian investments
New York State and New York City pension funds, as well as the Pennsylvania State Employees Retirement System Council, have joined a growing number of institutional investors divesting from the Russia.
New York State Comptroller Thomas DiNapoli said he has ordered his staff to ban all new investment in Russian companies and review current investments in the state’s common retirement fund. New York by $279.7 billion and assess whether they presented financial risks that warranted further restrictions or divestment. He said he was also reaching out to the pension fund’s investment managers to urge them to conduct similar reviews to mitigate investment risk and minimize market impact.
DiNapoli estimates the pension fund has $110.8 million in public investments in Russian companies, including direct holdings and mixed funds.
“Russia’s illegal invasion of Ukraine has led to unprecedented sanctions against Russian companies and individuals,” DiNapoli said. “While US sanctions already prohibit investment in many Russian companies, I believe it is prudent to freeze purchases in all Russian companies due to the unpredictability of the situation and the likelihood that conditions will deteriorate. . This will ensure that the fund does not increase its minimum exposure to the Russian economy while completing its divestment review, in accordance with my fiduciary duty.
Meanwhile, trustees of the $88.2 billion New York City Employees’ Retirement System voted to approve a resolution ordering Comptroller Brad Lander to divest from the system’s investments. in securities issued by Russian companies. NYCERS, which has more than 350,000 active and retired members, said it held about $31.1 million in Russian securities as of Feb. 25.
“As the Putin regime’s illegal invasion of Ukraine continues, investment risks, economic volatility and calls for an immediate end to these acts of aggression by the global community have only ‘increase,’ Lander said.
Under the resolution, the assignment extends to all NYCERS public equity and public fixed income investments in securities issued by Russian companies and includes both active and passive products. It also requires managers of passively managed accounts to reinvest funds from securities sold on a pro rata basis and managers of actively managed accounts to reinvest funds in accordance with the investment objectives and strategies of their NYCERS mandates.
Meanwhile, Penn SERS’ board of directors has directed staff, hired managers and consultants to take all necessary steps to divest the pension fund of all Russia-related assets “in a prudent and timely manner.” reasonable delay”.
Penn SERS Chairman of the Board, David Fillman, said the board had been briefed by its staff and outside consultants on “increased volatility, risk and potential for loss” in due to exposure to Russia-related investments. As of March 3, the Penn SERS fund had about $7 million, or 0.02% of its total fund value, invested in Russia-related investments.
The pension fund also announced a 17.24% return on investment in 2021 and approved $400 million in new private equity investments.
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Tags: Brad Lander, invasion, New York State Common Retirement Fund, NYCERS, Pennsylvania State Employees’ Retirement System Board, PSERS, Putin, Russia, New York City Employees’ Retirement System, Thomas DiNapoli, Ukraine, war