Moscow City - view of skyscrapers Moscow International Business Center. Moscow City – view of skyscrapers at Moscow International Business Center. (Photo: Shutterstock)

(Bloomberg) – A debate is raging inside the California Public Employees’ Retirement System over whether it should quickly exit its Russia investments — at a hefty cost. In the past week, staffers at the largest U.S. public pension discussed the possibility of dumping the holdings, a decision that would ultimately require the board’s approval. That followed California Governor Gavin Newsom’s call for state pensions to cut off money to Russia following its invasion of Ukraine — and to send a message to the world that the country is uninvestable.

Then came the price tag: Calpers would have to mark down its entire portfolio of publicly traded Russian investments — recently valued at roughly $300 million — to zero. Some senior managers reckoned the investments would be worthless if they tagged them for hasty disposal amid stiff sanctions and swooning prices for Russian assets, according to a person familiar with the matter.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2022 ALM Global, LLC. All Rights Reserved.