US - The California Public Employees' Retirement System (CalPERS) has selected six managers to invest up to US$500m in environmental public equity funds.The pool of managers includes: AXA Rosenberg, State Street Global Advisors (SSgA), Piper Jaffray, New Amsterdam Partners, Brandywine Asset Management and SSgA affiliate Innovest Strategic Value Advisors.
CalPERS said approval of the pool was the latest step in an effort to utilise managers with a proven track record of investing assets using environmental strategies.
Rob Feckner, CalPERS board president said: “Our decision to select them for this new ‘spring-fed’ pool also sends a strong signal to corporations that we’re serious about their environmental strategies.”
Earlier in the year, CalPERS invested a further $75m in the iShares KLD Select Social Index Fund managed by Barclay’s Global Investors as part of its environmental investment programme. The fund seeks to maximise exposure to large capitalisation companies that have positive social and environmental characteristics while maintaining risk and return characteristics.
Staff will determine whether to extend the contracts through annual reviews, and will fund the managers mainly by tapping passively managed public equity assets or cash inflows.
Meanwhile, CalPERS announced it had voted against the proposed merger between PacifiCare and United Health unless the companies brought back to shareowners for a separate vote the $345m in executive bonuses that would be paid as a result of the merger of the two health maintenance organisations.
Tim Sharp warns the DWP's plans for collective DC risk establishing an inhospitable environment for the lay trustee
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.