* Gov. JB Pritzker asked the pension systems last night to explore divestment of Russian assets…
February 28, 2022
Dear Colleagues:
With the continued invasion by Russia of the sovereign nation of Ukraine, the State of Illinois stands with the people of Ukraine and nations around the world supporting peace in the country. As such, I am writing to request that your respective boards take all steps within your existing authority to explore the potential of divesting state pension assets from Russian-based companies and Russian assets and the feasibility of doing so.
Across our five statewide pension systems, the state holds nearly $100 billion in pension fund assets. My administration will continue to work closely with you to ensure minimal disruption to the strong progress we have made in recent years in shoring up the financial stability of the funds. I look forward to being briefed on what you determine at the soonest possible date, and I look forward to sharing those findings with the General Assembly.
Thank you for your continued service and please contact Deputy Governor Andy Manar should you have questions regarding my request.
Thoughts?
…Adding… Press release…
STATEMENT FROM MAYOR LORI E. LIGHTFOOT
“In light of recent events and upon reflection over these last few days, I believe that Chicago needs to go further in its definitive actions against Russia. That is why yesterday, I directed World Business Chicago to suspend Chicago’s sister city relationship with Moscow. While this is not a decision I enter into lightly, we must send an unambiguous message: we strongly condemn all actions by the Putin regime. This suspension will be upheld until the end of hostilities against Ukraine and the Putin regime is held accountable for its crimes. We must continue to support freedom-loving people everywhere and ordinary Russians in their desire to be free.”
...Adding… More…
- Oswego Willy - Tuesday, Mar 1, 22 @ 9:16 am:
A bit, slightly, tone deaf considering the governor’s trustees can’t be persuaded from not investing in possibly “seen”conflicts.
Of course I support this, good on the governor, but the timing and the timing of the ask is…
- Arsenal - Tuesday, Mar 1, 22 @ 9:16 am:
Morally sound, but more to the point, fiscally prudent. I think it’s going to be awhile before we can consider Russian interests wise investments.
- Dankakee - Tuesday, Mar 1, 22 @ 9:20 am:
I get this move and totally support it, but if we’re divesting from bad actors, didn’t KSA murder an American journalist recently? Why stop at Russia?
- Three Dimensional Checkers - Tuesday, Mar 1, 22 @ 9:20 am:
Good idea, but this probably should’ve been done years ago. I wonder what this looks like now since I am sure any securities linked to Russia are pretty depressed now.
- Torco Sign - Tuesday, Mar 1, 22 @ 9:22 am:
Go on Facebook and look at your hardcore Democratic friends’ posts–the Dem base is all Ukraine, all the time. And this move looks like what other governments are doing. Low-hanging fruit taken.
- Cool Papa Bell - Tuesday, Mar 1, 22 @ 9:24 am:
Perhaps it’s a good idea. But I’ve always been a little dubious of how effective this is or if its just a big pile of virtue signaling.
Over all I’d rather have our pension funds maximize their returns if there is little to no overall effect by being invested in Russian companies or funds.
- Rich Miller - Tuesday, Mar 1, 22 @ 9:25 am:
===Go on Facebook===
Hard pass.
- Baloneymous - Tuesday, Mar 1, 22 @ 9:29 am:
I’m fine with the state disinvesting in Russia. I would be fine if we disinvested in Facebook as well. Both are horrible.
- Grandson of Man - Tuesday, Mar 1, 22 @ 9:36 am:
This is a good idea. The world must oppose the murderous autocrat at every level of government and the private sector. Dictatorship can’t win in the world or here in America, where we already had a violent overthrow attempt.
- Flyin' Elvis'-Utah Chapter - Tuesday, Mar 1, 22 @ 9:39 am:
“Go on Facebook”
…and immediately have your intelligence reduced to the point that you cannot perform basic mathematics.
- PublicServant - Tuesday, Mar 1, 22 @ 9:40 am:
Good idea.
- Amalia - Tuesday, Mar 1, 22 @ 9:41 am:
worked with South Africa. good.
- Perrid - Tuesday, Mar 1, 22 @ 9:42 am:
OW, the governor asking the state to take a moral stand and divest from Russia has nothing to do with JB’s blind trust. That’s just a big red herring.
- Matty - Tuesday, Mar 1, 22 @ 9:44 am:
I get it, but I also feel like public bodies should be investing wherever the highest ROI is.
- cermak_rd - Tuesday, Mar 1, 22 @ 9:46 am:
Even aside from moral repugnance, Russia is an economic disaster right now and even after all this is resolved, one way or another, the only ones with money will be oligarchs who can swoop in and even more plunder what’s left or starts to grow of the economy.
- Oswego Willy - Tuesday, Mar 1, 22 @ 9:46 am:
===asking the state to take a moral stand and divest===
We can’t ask the same for a man who put his investments in a trust?
It’s not a red herring, it *is* about choices.
With respect.
- Sue - Tuesday, Mar 1, 22 @ 9:52 am:
Better approach is a legislative prohibition
- CJA - Tuesday, Mar 1, 22 @ 9:52 am:
Pension systems have weathered the Covid storm fairly well if they were diversely invested. Whatever move is made, there has to be cover for the people investing in their pensions (ie., future financial stability). Asking people to weather a little pain because of sanctions is one thing, but I hope this takes a hard critical look in a way that protects the pensioners. Pensions may already be taking a hit because of DOW, NASDAQ, and SP500. I am saying this as a person who is going to rely on one of those pensions in the immediate future.
- muscular - Tuesday, Mar 1, 22 @ 9:54 am:
If he forces political disinvestment, it will likely jack up management fees as the pensions cannot buy ultra-low cost index funds and will need more active asset managers to buy individual stocks. Active managers rarely outperform broad stock indexes so pensioners will have subpar returns. This may be politically smart but financially dumb.
- Arsenal - Tuesday, Mar 1, 22 @ 10:00 am:
==Over all I’d rather have our pension funds maximize their returns if there is little to no overall effect by being invested in Russian companies or funds. ==
That’s my thing, I don’t know if investing in Russian firms is going to maximize returns for quite a while. These sanctions are hammering the Russian economy, and I doubt Putin is unwilling to raid private reserves to keep himself afloat.
- Annonin' - Tuesday, Mar 1, 22 @ 10:03 am:
Interesting idea, but SEC halted trading in Russian stocks over the weekend, but probably too late. Meanwhile he could check on stock in gun makers, the dope industry, etc.
- Anyone Remember - Tuesday, Mar 1, 22 @ 10:07 am:
And so it begins …
https://www.theguardian.com/business/2022/mar/01/uk-private-pension-scheme-russia-uss
- Donnie Elgin - Tuesday, Mar 1, 22 @ 10:08 am:
=the Dem base is all Ukraine=
that may be, I have many friends at a large Ukrainian Orthodox church, not a Dem among them
- Lincoln Lad - Tuesday, Mar 1, 22 @ 10:08 am:
Have we been investing in Russian assets? Considering efforts at election interference… fueling disinformation through social media… support of Syria and Assad… ransomware cyber attacks…
All that, and pension systems have invested in Russian assets? I hope not.
- Arsenal - Tuesday, Mar 1, 22 @ 10:13 am:
==Hard pass. ==
Genuine lol.
- Nick - Tuesday, Mar 1, 22 @ 10:17 am:
Considering the West is actively doing all it can to collapse the Russian financial system, and all the sanctions, this is just wise not even moral
- Juvenal - Tuesday, Mar 1, 22 @ 10:26 am:
=== the governor’s trustees can’t be persuaded ===
That is simply not how blind trusts work. In fact, it is the opposite of how blind trusts work. They are not, in fact, “the governor’s” trustees, and he is not supposed to be influencing them.
The Trustees of the blind trust, like the people in charge at Citadel, do have a fiduciary duty to consider whether Russian companies in general or on a case-by-case basis are a wise investment given the geopolitical turmoil. If you are looking for stable, predictable profits, now probably isn’t the time to invest in Russia.
- OneMan - Tuesday, Mar 1, 22 @ 10:32 am:
Makes sense, it would seem logical that the systems would kind of have this information for a variety of countries that could be ‘problematic’ either for political or even currency reasons.
- Oswego Willy - Tuesday, Mar 1, 22 @ 10:39 am:
=== That is simply not how blind trusts work. In fact, it is the opposite of how blind trusts work. They are not, in fact, “the governor’s” trustees, and he is not supposed to be influencing them.===
Being “helpless” to trustees when simple parameters can likely be part of any managing issue makes the whole blind trust thingy quite comical and not really anything of consequence.
As - A Guy - pointed out, the governor can orchestrate profits going places but can’t ask that the investment doesn’t happen at all?
It’s tone deaf, today, to ask about investing changes while his own trust has no guardrails that may be deemed needed to investing?
- Torco Sign - Tuesday, Mar 1, 22 @ 10:57 am:
Tough crowd lol. I was not endorsing Facebook, Meta, whatever it’s called now (nor was I suggesting Democrats have 100% of the Ukrainian vote). My point was just that Democratic activists are very vocal about and focused on Ukraine. It sort of makes sense when pieced with Trump-Russia, impeachment, standing up for democracy, etc. Anyway, when it seems like the right thing to casual observers and your base, it’s a fairly easy political decision for someone like Pritzker.
- cover - Tuesday, Mar 1, 22 @ 11:10 am:
= Better approach is a legislative prohibition =
Leader Durkin filed HB5705 last week. Let’s see if the House actually considers the measure, since it was (understandably) filed after the normal deadline.
Personally, I would like to see Speaker Welch fast-track the bill, giving Durkin a bipartisan win - I expect this bill to get 100+ votes if it gets to the floor.
- Mason born - Tuesday, Mar 1, 22 @ 11:18 am:
Honestly, kind of feel like moving away from Russian Assets was wise a few months ago when Putin started ramping up. If not for the moral purpose of semi supporting an autocrat with Stalin ambitions then avoiding any financial hit if he got squirrelly and sanctioned. Better late then never i guess.
- Last Bull Moose - Tuesday, Mar 1, 22 @ 11:20 am:
I would support no new investments in Russia or Belarus. Selling what we already have causes no harm to Russia nor help to Ukraine. I would ride it out and see if some value comes back.
- Three Dimensional Checkers - Tuesday, Mar 1, 22 @ 12:23 pm:
===Honestly, kind of feel like moving away from Russian Assets was wise a few months ago when Putin started ramping up. If not for the moral purpose of semi supporting an autocrat with Stalin ambitions then avoiding any financial hit if he got squirrelly and sanctioned. Better late then never i guess.===
It would’ve been better when they invaded Ukraine the first time in 2014, but we are where we are.
- Mason born - Tuesday, Mar 1, 22 @ 12:30 pm:
Checkers
Indeed, it appears we should have done a lot more in ‘14 than we did. We mistook the Appetizer for the main course and refused to respond to naked aggression.
- G'Kar - Tuesday, Mar 1, 22 @ 1:05 pm:
==It’s tone deaf, today, to ask about investing changes while his own trust has no guardrails that may be deemed needed to investing?==
It may be tone deaf, but I doubt Pritzker’s situation, or the BGA decision to release the report had any influence on Putin’s decision to invade. Not making the request to divest now would be a real moral failing.
With respect.
- Oswego Willy - Tuesday, Mar 1, 22 @ 1:12 pm:
=== had any influence on Putin’s decision===
It’s still tone deaf.
Your rationale there is to compare with an “if/then”
The reality is the governor’s take to his own monies is still a stand alone head scratcher… no matter what happens globally.
The governor made a mistake. It should be corrected, not be given excuses, or ignored when policies on investments are seen as choices
Respectfully
- Rabid - Tuesday, Mar 1, 22 @ 1:40 pm:
You tell a blind trust what to do, is not a blind trust
- Oswego Willy - Tuesday, Mar 1, 22 @ 1:45 pm:
=== You tell a blind trust what to do, is not a blind trust===
Telling a blind trust parameters that stop the appearance of conflicts of interest, before they happen, isn’t steering any blind trust.
- City Zen - Tuesday, Mar 1, 22 @ 2:07 pm:
Did JB make this announcement from the Hyatt in Moscow or Sochi?