Mississippi calls on severing financial ties with Russia

Mississippi legislators have passed resolutions in the state House and Senate calling on the state to sever all economic and financial ties with Russia because of its invasion of Ukraine.

"The State of Mississippi expresses its strongest concern regarding reports of civilian casualties from this Russian aggression and calls for ensuring humanitarian access and respect for the relevant provisions of international humanitarian law and human rights," legislators write in Senate Resolution 563.

Both Senate Concurrent Resolution 563 and House Concurrent Resolution 77 call on the $33.9 billion Mississippi Public Employees' Retirement System, Jackson, to halt investing in businesses or financial institutions owned by Russia or its citizens. They also prohibit, among other things, investment in Russian businesses through the Mississippi Development Authority or the sale, purchase, distribution or storage of alcoholic beverages from Russia.

Ray Higgins, executive director of the Mississippi Public Employees' Retirement System, said the pension fund's exposure to Russian securities represents a very small percentage of total assets, with some of the equity exposure in a global index fund. He estimates that the total exposure is less than 0.18%.

Mr. Higgins also said that he is working with the system's index fund managers on "how best to proceed."

Lastly, Mr. Higgins noted that many of the system's active managers have decided to pause transactions in Russia, suspend additional investment in Russia, and sell Russian holdings "in a prudent manner when it is appropriate to do so."

"Any of these changes and adjustments could take time and will take our continued focus on our fiduciary duty to do what is best for the system while being compliant with U.S. sanctions, adapting to market changes, and monitoring the legislative and regulatory environment," he said.