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PRESS RELEASEOffice of Missouri State
Treasurer |
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PRESS RELEASEOffice of Missouri State
Treasurer |
ST. LOUIS – State Treasurer Sarah Steelman today won approval for a new policy that would provide protections against any investments by the state pension fund in companies or countries with ties to terrorism. The new policy was unanimously adopted today in a St. Louis meeting by the board of trustees for the Missouri State Employees Retirement System (MOSERS).
“This is a major step forward in ensuring our state pension funds are not invested in any company or county with ties to terrorist groups or acts.” State Treasurer Sarah Steelman said. “This policy addresses both investments in companies linked to terrorism, as well as companies investing in countries the U.S. government has found to be serving as state sponsors of terrorist activities.”
The new policy directs that a process to screen investments will be implemented by MOSERS. That process can involve comparing direct investments to federal listings, independent research firms that track activities of foreign companies and informal sources, such as financial wires and publications.
The policy also requires fund managers, independent financial professionals who actually place investments for the state, to include terrorism screening as part of the due diligence background review of all investments.
Fund managers would have to disclose to MOSERS any risk that terrorism places on the fund managers portfolio, as well as what efforts the fund manager is taking to screen against investments for possible terrorist connections.
“This provides a double layer of protection against investments with ties to terrorism,” Steelman said. “It requires independent screenings by the state and disclosure by the private fund managers not only of investments with ties to terrorism, but of the risk that terrorism poses to that particular fund to minimize global security risks to our portfolio.”
While many states have adopted policies or laws requiring disclosure of terrorist connections of their investments or the global security risk terrorism poses to the funds in which they invest, the new MOSERS policy directly prohibits any investments identified through the terrorism screening process.
“The policy directs that MOSERS shall not hold any investments that are identified through the approved screening process,” Steelman said. “This is a very strong policy. I am pleased to have the unanimous support of the MOSERS board in adopting this policy to protect our investments on behalf of the citizens of this state.”