University of Maine System, Bangor, approved an investment of about $72 million in State Street Global Advisors' passive domestic large-cap fossil free reserves-free strategy for its $320 million managed investment pool of endowment assets.
The system's investment committee approved the investment at its Dec. 1 meeting, said Tracy E. Elliott, the system's vice president of finance and controller, in an email.
Funding comes from the termination of the investment pool's allocation to SSGA's S&P 500 index strategy.
In April, the system's investment committee approved the divestment of its assets from fossil fuels. The long-term goal is to divest from actively managed commingled fund and mutual fund investments in fossil fuel-related companies by 2030.
The system defines fossil fuel-related investments as the list of 200 global companies across the 100 largest public coal and 100 largest public oil and gas reserve owners (including oil sands reserve owners).
As of Sept. 30, the managed investment pool had just over $6.5 million in exposure to fossil fuel-related investments, about $2.7 million of which was in the SSGA S&P 500 index strategy.
Investment consultant NEPC assisted.