State Pensions and Russia

Last week many people heard about the Kentucky Teachers’ Retirement System losing more than $3 million when it sold off its direct investments in a Russian Bank. (read more here) However, they aren’t the only pension funds in possible trouble. Many state pension funds have Russian financial holdings. “Pensions in the U.S. and around the world hold Russian stocks in their international equities portfolios, with the holdings making up perhaps 1% of total pension assets.” According to the Wall Street Journal. 

The article goes on to state “Retirement systems divesting from Russia can expect to sell at a significant loss, pension officials and other asset managers said. Russian stocks and bonds held by the $68 billion Maryland State Retirement and Pension System, for example, had a market value of $96 million as of Thursday, down from $197 million a week before, the fund said. So, while 1% may not seem like a lot, when looking at the big picture it is more than you might have thought. 

During volatile times like this, you may be looking for safer money options or just a little help on what this means to your bottom line. If so, reach out to us. We can help you navigate the impact and may have some ideas that can help. 

Read the Wall Street Journal article. 

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