Public School Teachers' Pension & Retirement Fund of Chicago is recommending its equity and fixed-income managers use KLD Research & Analytics to screen out prohibited investments connected to Sudan, said Kevin Huber, executive director of the $11 billion fund.
A state statute takes effect today requiring state, county, city and other public pension funds in Illinois to begin divesting Sudan investments and complete the process over the ensuing 18 months. The law requires the use of an independent screening firm for managers investing in public markets.
"We looked at other firms but believe KLD had a product best tailored to Illinois," Mr. Huber said. "We hope all the managers use them" to avoid discrepancies with different screening lists, although the managers can select another firm.
In December, the $13.4 billion Illinois State Universities Retirement System, Champaign, recommended KLD to its managers.