Calpers Halts New Russia Investments to Meet Governor’s Ask
(Bloomberg) -- The nation's biggest pension fund said it has halted new investments in Russia, but that sanctions have made it difficult to liquidate its current holdings.
The California Public Employees' Retirement System said it has $420 million in public stocks and $345 million in illiquid real estate investments linked to Russia, representing less than 0.2% of its $473 billion portfolio, according to a March 2 letter to California Governor Gavin Newsom. On Monday, the Democratic governor sent a letter to Calpers, the California State Teachers' Retirement System and the University of California's retirement system asking them to stop purchases of Russian debt and any capital flowing to the country.
Calpers agreed to the halt, adding that it does not hold any Russian government debt. The fund also noted that it's assessing next steps with its current investments, and that liquidating them has become more complicated because of current sanctions and market restrictions. On Wednesday, Calstrs said $171.5 million of its $319 billion portfolio is invested in Russia and pledged to work with the governor.
The push comes as pensions nationwide try to figure out what to do with their Russia-linked holdings after that country invaded neighboring Ukraine and the U.S. and its allies imposed sanctions. Most U.S. pension funds have relatively small exposures to Russia.
Read more: U.S. Pensions Face Demands to Exit Hard-to-Unwind Russia Assets
Oregon State Treasurer Tobias Read said in a statement that his staff is working to dispose of state investments in sanctioned Russian companies and government entities. The state has exposure to about $122 million of Russia-linked assets via bonds, public equities and currency among its $135 billion in assets under management, according to a spokesperson for the state treasury as of Feb. 28.
“We are working with U.S. Treasury to learn more about how best to proceed with removing these assets, consistent with our legal and fiduciary responsibilities,” Read said in a statement Thursday.
Texas Comptroller Glenn Hegar said he would take steps to divest the state's holdings in Russia-linked businesses after those assets are identified. Hegar didn't say how much in Russian holdings the state has.
©2022 Bloomberg L.P.
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