Firm selected to screen Missouri stocks

State Street will manage an equities fund that screens out stocks of companies that are engaged in the sponsorship of terrorism, or are operating in countries sanctioned by the U.S. government.

The firm will work with consultant Conflict Securities Advisory Group, which provides monitoring service to identify stocks with global security risk. After the stocks are screened, State Street will rebalance the fund by either replacing screened stocks with comparable stocks or by adjusting the weightings of remaining stocks.

“I’m happy to tell the people of Missouri that today, we’ve taken another step to make sure their money is invested wisely and safely,” State Treasurer Sarah Steelman said in a news release. “Companies who sponsor terrorism or prop up governments of sanctioned nations who threaten our security should never be supported by public dollars – today, the MIT board made sure that won’t happen.”

Steelman, chairman of the MIT board, has been instrumental in the effort to protect state investments since taking office in January 2005.

State Street was one of several major financial companies that submitted proposals for the trust and was chosen based on its past performance, management and trading style and adherence to the EAFE benchmark, according to the release.

The Missouri Investment Trust is an agency created by state law that managed long-term funds held on behalf of the state’s various cultural groups.

Nations currently sanctioned by the United States are Iran, Syria, North Korea, Cuba and Sudan.[[In-content Ad]]