US - The US$156bn California State Teachers' Retirement System (CalSTRS) has become the first major US public fund to join the Enhanced Analytics Initiative, after announcing it had become an associate member.
Christopher Ailman, chief investment officer of CalSTRS, said CalSTRS had longed called for increased disclosure and analysis on material risks such as climate change.
"Membership in a network like EAI reinforces that investment policy aim and signals to our partners in the investment profession that this is a core issue for the fund," said Ailman. "It is important for mainstream investment professionals and investors to be fully informed on issues that have value implications for the portfolio, and by extension, for our members.”
The CalSTRS announcement comes two days after Robeco, the Dutch asset manager with €135bn in assets under management, joined the initiative.
Typically, EAI members must allocate a minimum of 5% of their annual broker commissions to those research organisations that best analyse the material extra-financial issues (EFIs) that can affect a company’s or a sector’s performance.
Associate members like CalSTRS, however, are investment institutions that outsource the majority of their share trading operations to external investment managers, and therefore have no direct contractual relationship with research providers, but are actively supportive of the objectives of EAI.
EAI now has assets under management of approximately €1.3trn.
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