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Why Newtown Should Dump Russian Stock

Why Newtown Should Dump Russian Stock | Newtown News of Interest | Scoop.it

UPDATE: On April 13, 2022, the Newtown Board of Supervisors unanimously voted to divest Twp pension funds of Aberdeen (ABEMX) holdings, which includes Russian & Chinese securities, and put 50% of the proceeds into a stock fund and 50% into a bond fund. Finally, we #StandWithUkraine! 

 

Newtown Township pension funds include shares in the Aberdeen Emerging Markets fund (ABEMX), which is the only pension fund that owns shares in Russian companies. At the March 9, 2022, Newtown Township Board of Supervisors (BOS) meeting, supervisors signaled their intention to rid the township's pension funds of Russian stocks in protest against the invasion of Ukraine by Russia and the apparent war crimes being committed by Russia in Ukraine.

On Monday, March 21, 2022, Supervisors were informed by Dahab Associates (Newtown Township pension funds manager) that ABEMX can't offload Russian stock because the Russian market was not open. According to the minutes of the March 9 meeting, however, "All agreed to ask Mr. Lewis [the Township Manager] to contact the pension funds advisor to make clear that the Township would not want the funds invested in Russian markets and if Aberdeen is not divested, then our funds should be moved out of Aberdeen."

According to Dahab, a "representative" of Aberdeen stated that their "intent is to absolutely sell off any Russian stock once they are able to do so when the Russian markets reopen."

NOTE: The Russian stock market resumed limited trading on Thursday, March 24, 2022, under heavy restrictions. Foreigners – INCLUDING ABEMX – are barred from selling. A U.S. official called the severely restricted market a "charade," with only some listed shares trading and Russia making clear it would "pour government resources into artificially propping up the shares of companies that are trading."

Let's NOT wait for Russia to fully open its stock market!
My opinion is that Newtown's pension funds should offload ABEMX immediately and buy another fund that does not own Russian stock.

 

More reasons to offload NOW...

 

johnmacknewtown's insight:

Should Newtown Dump ABEMX Now?

 

Survey results: https://sco.lt/6yDvgO 

 

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Newtown News of Interest
These Scoops are excerpts from articles published in local newspapers and other sources that may be of interest to Newtown area residents. Please click on the "From" link to access the full original article. Any opinions and "insights" appended to these article summaries are solely those of John Mack and do not represent the opinions of any other person or entity.
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