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Senate committee hears proposal to allow limited investment of unclaimed‑property funds in rated foreign government bonds
Summary
State Treasurer Steven Johnson told the Senate Financial Institutions and Insurance Committee that allowing KPERS trustees to invest up to 5% of unclaimed‑property cash in dollar‑denominated, investment‑grade foreign government obligations could modestly boost returns but carries market risk; CAPERS/KPERS staff called it technical and non‑actuarial.
State Treasurer Steven Johnson testified before the Senate Committee on Financial Institutions and Insurance in support of Senate Bill 232, which would permit the board of trustees that manages the Treasurer’s unclaimed‑property fund to invest up to 5% of the fund’s cash in dollar‑denominated bonds, notes or debentures of foreign governments that meet specified investment‑grade ratings.
Johnson told the committee that “currently, there is $681,000,000 in that fund,” and that the fund has been managed conservatively since the 2000s with a mix intended to limit volatility. He said the bill would restrict investments to developed economies rated at A‑/A3 or better by S&P, Moody’s or an NAIC‑accepted…
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