TOPEKA — Kansas State Treasurer Lynn Rogers recommended the state’s public pension system respond to the Russian invasion of Ukraine by divesting a $35.9 million investment in Russian securities.
Rogers, who serves on the nine-member Kansas Public Employees Retirement System board, said trustees should work on extracting the pension system from Russian entities. An estimated 0.14% of KPERS’ portfolio has ties to Russia.
“I’m in full support of the financial sanctions placed against Russia — the aggressor in this escalating war,” Rogers said. “I will be working with my fellow trustees to protect the interests of our members and their beneficiaries. I stand firmly in support of the people of Ukraine.”
Alan Conroy, executive director of KPERS, said the system’s investment in Russian securities was a minor part of the total portfolio. As of Feb. 25, he said, the retirement system held Russian stocks in an international equity portfolio. KPERS holds no Russian debt, either corporate or sovereign.
“We are in daily communication with the system’s international equity managers on the situation. Of course, the retirement system will comply with all U.S. government sanctions against Russia,” Conroy said.
Conroy said KPERS wasn’t aware of an international equity index that excluded Russian securities. The Russian equity market is closed, he said Wednesday, and Russian brokers were instructed not to accept trade orders from foreign investors even if the market reopened.
“As a practical matter, new investments in Russia are effectively halted at this time, due to the lack of market liquidity,” he said.
