PRESS RELEASE Office of Missouri State Treasurer Sarah Steelman FOR IMMEDIATE RELEASE  --  June 22, 2005

Missouri Investment Trust Board Votes To Explore Investment Screens
To Preclude Financial Support For Companies Linked to Terrorist Activities

            JEFFERSON CITY – The Board of Trustees of the Missouri Investment Trust on Tuesday deemed the lack of a policy on terrorism unacceptable and voted to research ways to screen investments to help ensure funds are not placed in companies with terrorist ties or with direct equity links to nations the U.S. government had sanctioned as state sponsors of terrorism.

            The Missouri Investment Trust is a $23.4 million fund established by the General Assembly in 1997 to allow long-term investments of funds designated by lawmakers for the arts and humanities. It is administered by a seven-member board of trustees and is chaired by State Treasurer Sarah Steelman.

            “Investing in terror is wrong for Missouri, and the action by the board is part of an ongoing effort to ensure the safety and integrity of investments that belong to the citizens of this state,” Steelman said. “Investing in companies or countries tied to terrorist groups is poor financial strategy and bad public policy.”

In addition to the Treasurer, the seven-member panel includes the commissioner of administration, a state representative, a state senator and three members appointed by the governor with the advice and consent of the Senate.

The funds managed by the board are placed in passive investments, or index funds, that are similar to mutual funds used by individual investors. Funds used by the Missouri Investment Trust include the S&P 500 Fund, the Russell 2000 fund and the EAFE fund, which has positions in European, Asian and Far Eastern companies.

Because the investments are placed in funds that own shares in hundreds of companies, it is especially difficult to isolate those companies that may be involved in funding terrorism or in major government projects in countries the U. S. State Department has sanctioned as sponsors of terrorist activities.

“Unlike direct investments which are easier to control through fund managers, these are commingled funds invested in hundreds of companies,” Steelman said. “We own shares of the fund that owns stock in hundreds of companies, but we remain concerned about any investments in companies or countries tied to terrorism.”

The board voted to seek requests from qualified vendors that screen corporate activities so investors are aware of individual company’s projects in different geographic areas and involvement in groups that could pose a security risk to the United States.

The board also established a subcommittee to develop a policy and review investment options to help ensure investments are not placed with companies or countries involved in terrorist activities.

The subcommittee will include Commissioner of Administration Michael Keathley, Rick Dahl, who serves as chief investment officer for MOSERS, former Sen. Anita Yeckel and Kathy Conley Jones.

The meeting marks the second time in a week that a public pension fund in Missouri has voted to implement or review policies concerning investments in companies tied to terrorist acts. Last week, the MOSERS Board voted to establish a similar subcommittee to review its policy. Recommendations are expected as early as next month for final consideration by the respective pension fund boards.

 -END