The US’s biggest state pension fund has hired AXA Investment Managers to run a $1bn (€854m) quant-driven global sustainable equity mandate.
The California Public Employees’ Retirement System (CalPERS) selected AXA IM’s Rosenberg quantitative equities business to manage the allocation in line with its environmental, social and corporate governance (ESG) requirements. The strategy focuses on low volatility and high earnings indicators, according to Rosenberg.
Heidi Ridley, chief executive of AXA IM Rosenberg Equities, said: “We believe that ESG information is economic in nature; it helps orient us toward companies that are using their resources well – human, physical, and technological – and away from those who are not in step with long-horizon trends.”
CalPERS runs $351bn (€299.8bn) and recently reported an 8.6% net investment return for the 12 months to 30 June.
S&P seeks to integrate future carbon prices in indices
Index provider S&P Dow Jones Indices (S&P DJI) has launched a range of equity benchmarks weighting companies by exposure to the projected price of carbon in 2030.
S&P DJI has created 12 indices, including global, regional and national benchmarks. Markets covered include the US, Europe, Asia Pacific, emerging markets and South Africa.
The company claimed the indices were the “first of their kind” in their use of predicted carbon price data, supplied by Trucost’s Corporate Carbon Pricing Tool.
Hannah Skeates, senior director for ESG and strategy indices at S&P DJI, said: “As the efforts to achieve the commitments of the Paris Agreement and the transition to a low carbon economy progress, future carbon prices could lead to significant increased costs for companies that have not managed their global emissions.
“The S&P Carbon Price Risk Adjusted index series was developed to help market participants understand the financial risks embedded among the higher carbon emitters of the current global economy.”
The index series in full:
- S&P 500 Carbon Price Risk 2030 Adjusted index
- S&P MidCap 400 Carbon Price Risk 2030 Adjusted index
- S&P SmallCap 600 Carbon Price Risk 2030 Adjusted index
- S&P Europe 350 Carbon Price Risk 2030 Adjusted index
- S&P Global 1200 Carbon Price Risk 2030 Adjusted index
- S&P South Africa Composite Carbon Price Risk 2030 Adjusted index
- S&P Global LargeMidCap Carbon Price Risk 2030 Adjusted index
- S&P Developed LargeMidCap Carbon Price Risk 2030 Adjusted index
- S&P Emerging LargeMidCap Carbon Price Risk 2030 Adjusted index
- S&P Europe Developed LargeMidCap Carbon Price Risk 2030 Adjusted index
- S&P North America LargeMidCap Carbon Price Risk 2030 Adjusted index
- S&P AsiaPac Developed LargeMidCap Carbon Price Risk 2030 Adjusted index
Swiss bank acquires UK manager
Swiss private bank UBP is to acquire ACPI Investments, a UK-based asset manager. Subject to regulatory approvals, the transaction should close in the fourth quarter of this year.
UBP indicated it stood to gain an additional £2bn (€2.2bn) in assets under management from the deal, although no other terms were disclosed. The company already runs CHF128.4bn (€110.2bn).
ACPI runs a range of strategies for private and institutional clients including fixed income, equities and alternatives. It was founded in 2001 by former Goldman Sachs partners Alok Oberoi and Joseph Sassoon.
Guy de Picciotto, chief executive of UBP, said: “This acquisition reaffirms our long-term commitment to the UK and our intention to continue broadening our footprint in this pivotal market.
“London remains a hub for international investors, as well as for UBP which provides both foreign and UK-based clients with innovative solutions. ACPI is recognised as an investment manager of reference in the wealth management sphere with extensive expertise that will complement the range of services we already offer our clients out of London.”
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