An Updated Statement on SERS’ Russian Holdings

SERS’ Board and staff recognize the gravity of the unprovoked Russian incursion into sovereign Ukraine and its effect on the world. We admire the resolve of the Ukrainian people and support their continuing efforts to defend their peaceful nation.

SERS supports all state and national efforts to stop the flow of money to Russia, and has instructed its emerging markets managers to refrain from purchasing Russian and Belarusian assets until those sanctions are lifted.

As a globally diversified investor, SERS had exposure to Russian assets through our emerging market equity and bond holdings. As of March 1, 2022, SERS’ Russian holdings totaled $42.1 million, which was 0.24% of the Total Fund holdings of $17.9 billion. As of March 17, 2022, there is currently no market for these assets and they have been marked down to zero as stipulated in SERS’ investment valuation policy.

While SERS continues to hold the shares in the Russian assets, staff will carefully assess activity in Russian markets when they reopen, and determine when it is reasonable and prudent to sell those assets. Ultimately, responsibly investing SERS’ assets to provide secure retirements for our members is our utmost priority. As always, our fiduciary duties guide our decisions in buying and selling assets.