$60 million worth of South Australian workers’ superannuation funds held in Russian assets by Funds SA are to be divested under laws to be introduced into the State Parliament.
Announced by Premier, Peter Malinauskas, the Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill 2022 was tabled on 5 May.
“The changes will effectively end State Government funds and the superannuation of the State’s Public Sector workers being invested in Russian assets,” Mr Malinauskas said.
“The move brings South Australia in step with the Queensland and NSW Governments and is an effective solution to this important moral and ethical issue,” he said.
Mr Malinauskas said that as the manager of State Government investments and workers’ superannuation, Funds SA had $43 billion under management.
“This is an important move and one that’s in line with community expectations,” he said.
“We cannot continue to invest South Australians’ money in Russia given their disgraceful conduct in Ukraine, which we have all watched in horror.
“It would be unacceptable for State Government funds and Public Sector workers’ superannuation to continue being invested in Russian assets.
“I hope this Bill can be passed expeditiously with bipartisan support.”
Treasurer, Stephen Mullighan said Funds SA had already commenced divesting itself of Russian assets in line with sanctions imposed by the Australian Government.
In a statement, Funds SA said that in response to the crisis in Ukraine, it had been actively engaged with its external investment managers regarding exposure to Russian securities, and had been implementing sanctions imposed by the Australian Government.
“Some divestment has already been achieved, and the original exposure to Russia of $60 million has been reduced to $9 million, or 0.02% of the investment portfolio,” it said.
“We will continue to seek divestment across the portfolio from our investment managers, but note that trading restrictions in key markets make this difficult at the current time,” Funds SA said.
The two-page Amendment Bill can be downloaded at this PS News link.
