CalSTRS announces sustainability-focused global equity managers
Managers selected to drive long-term value creation through intensive ESG integration.
WEST SACRAMENTO, Calif. (June 26, 2019) – The California State Teachers’ Retirement System today announced the selection of three new global equity investment managers. The firms will collectively manage $750 million across non-U.S. focused strategies.
“We are excited about these new partnerships and their expertise in delivering resilient financial returns.”
Director of Sustainable Investment and Stewardship Strategies
“The three firms, Hermes Investment Management, Impax Asset Management, and Schroders are highly attuned to how sustainability-related trends, like the low carbon transition and resource efficiency, create investment risks and opportunities,” said Kirsty Jenkinson, director of Sustainable Investment and Stewardship Strategies. “We are excited about these new partnerships and their expertise in delivering resilient financial returns amid a rapidly changing global economy.”
Jenkinson added that the firms offer geographic diversification and apply analytical rigor in incorporating environmental, social and governance factors into fundamental analysis—all while maintaining a long-term investment horizon.
“This is the culmination of a thorough and rigorous selection process that allowed us to identify proven industry leaders with expertise in integrating ESG analysis into investment decision-making,” Portfolio Manager Brian Rice added. “We believe they will bring positive environmental and social as well as financial impacts to our portfolio.”
The firms are the first to emerge from a CalSTRS manager pool initiated in October 2016, which diversifies the $6 billion Sustainable Investment and Stewardship Strategies portfolio. They join existing managers Generation Investment Management and AGF Investments as well as several activist managers focused on driving corporate governance and operational improvements
The California State Teachers’ Retirement System, with a portfolio valued at $226 billion as of May 31, 2019, is the largest educator-only pension fund in the world. CalSTRS serves California’s more than 949,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts. A hybrid retirement system, CalSTRS administers a combined traditional defined benefit, cash balance and voluntary defined contribution plan. CalSTRS also provides disability and survivor benefits. CalSTRS members retire on average after more than 25 years of service, with a median retirement age of 62.9, and a monthly pension of approximately $4,475, which is not eligible for Social Security participation. For more data, download the CalSTRS Fast Facts 2018 brochure.
See how CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Global Reporting Initiative Sustainability Report.
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