CalPERS puts $100m into new ESG product

California fund backs quant ESG boutique

The California Public Employees’ Retirement System, the largest US pension fund, is to put $100m (€67m) into a new environmental, social and governance product provided by Quotient, one of the boutique asset managers that it backs under its manager development program (MDP).
“Quotient, a majority employee-owned firm with MDP II since 2008, will receive $100m for a new environmental, social and governance product,” CalPERS said in a statement, without providing further details.
The California pension giant seeded New York-based Quotient Investors with $150m in 2008. It put $9m into its Quotient Sustainable Alpha product, an equity strategy providing exposure to ESG factors while aiming for market outperformance (alpha), in December 2009.Quotient was founded in 2007 and is a signatory to the United Nations Principles for Responsible Investment. It offers multiple US equity strategies including large cap, small cap, value, and growth, using a fundamental investment approach with systematic risk control. Quotient is headed up by former DIAM USA investment director Andre Bertolotti
CalPERS also earmarked $150m each to Paris-based quant firm TOBAM and San Francisco-based emerging markets outfit Victoria.
The fund said it would receive an undisclosed equity stake TOBAM and Victoria in exchange for working capital.
CalPERS has about $236bn in assets under management. CalPERS’ announcement