Idaho ordered liquor stores to remove Russian vodka. What about state investments?
The Public Employees Retirement System of Idaho announced Thursday that it will divest itself of investments in Russia because of last week’s invasion of Ukraine.
The agency, which manages a $22.4 billion investment fund, has $8.4 million invested in Russia, spokesperson Jenny Flint said by email.
“In close consultation with Gov. Brad Little, PERSI has commenced disposition of all liquid assets connected to Russia in an expedited manner consistent with its statutory fiduciary duty,” the agency said in a news release said. “Liquid investments, which are minor in nature, will be monitored for opportunities for expeditious disposition.”
A liquid asset is one that is easily converted to cash. PERSI has its $22.4 billion investment fund spread among 18 private managers. Investments include cash, mortgages, real estate investment trusts, fixed-income and domestic and foreign equity funds.
PERSI serves 170,172 active and retired state, county and other local-government employees working for 835 public employers in Idaho. Members will earn 24.7% interest on their account savings this year. PERSI’s actuaries estimate an average return of 6.5% per year for the next 30 years, according to a newsletter.
Last year, more than $921 million was paid to 50,891 retirees. The average monthly benefit is $1,708.
On Monday, Jeffrey Anderson, director of the Idaho Liquor Division, ordered state-owned stores to remove two brands of Russian vodka sold in the state, Russian Standard and Beluga. His order also means bars and restaurants, which buy their liquor from the state, no longer have access to those brands.
“We just feel that given what’s occurred in Ukraine that we’re going to ask people to enjoy something else,” Anderson said at the time.
Meanwhile, the Idaho treasurer’s office has no investments in Russia.
“By statute, we are not allowed to invest any state monies in foreign companies,” Bibiana Nertney, deputy Idaho treasurer, said by phone.
The treasurer’s office invests in a number of funds, mostly fixed-income securities such as treasury and corporate bonds, she said. It has $11.2 billion in assets under management, Laura Steffler, the state’s chief deputy treasurer, said by email.
Lawmakers are considering ways for the state to divest from Russia. Reps. John Gannon, a Boise Democrat, and Bruce Skaug, a Nampa Republican, introduced bills that would direct state agencies to shed investments in Russian currency and assets.
One bill would direct the Endowment Fund Investment Board, which manages the financial assets of several state agencies, to sell, trade or divest Russian currency and investments. The other bill would direct PERSI to drop Russian investments. Gannon told the Idaho Statesman the state has millions invested in Russian assets.
Gannon said it’s “imperative” that the Idaho government supports the “valiant” Ukrainian people. “Besides, Russia right now is a lousy investment,” he added.
This story was originally published March 3, 2022 at 9:28 AM.
