LANSING, MI (WKZO AM/FM) – The State of Michigan Investment Board voted unanimously today to divest the State of Michigan Retirement Systems (SMRS) pension plans from companies based in Russia and Belarus.
The state board’s action comes after Gov. Gretchen Whitmer issued a letter March 1 calling for a special meeting to divest from any institutions and companies based in Russia.
In a release Wednesday morning, the board said it will begin divesting from Russian and Belarusian companies as soon as practical when market conditions allow.
“Today, the board decided this action is more than the right thing to do,” said State Treasurer Rachael Eubanks, who is the chairperson of the State of Michigan Investment Board. “We have directed the investment team to begin the divestment process. Any state assets that could be used to support and prolong Russian’s war against Ukraine runs contrary to the purpose of providing benefits to individuals who dedicate their professional lives to public service.”
With the SMRS portfolio exceeding $98 billion, approximately 0.06% of state pension assets are associated with Russian institutions and organizations. There are no Belarusian holdings in the state portfolio.
The Russian holdings are managed by external investment managers and primarily invested in low-cost international stock index funds. The index funds are the direct owners of the Russian securities.
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