Massachusetts Gov. Charlie Baker signed into law a bill Thursday night that would require the $80 billion Massachusetts Pension Reserves Investment Management Board to increase the diversity of the investment managers and consultants it hires.
An amendment to the newly signed bill, H.4887/S.2842, would require the Boston-based MassPRIM to increase to at least 20% the diversity of both investment managers and consultants the state trust fund hires, confirmed Andrew S. Napolitano, a spokesman for Massachusetts state Treasurer and MassPRIM Chairwoman Deborah B. Goldberg.
"Our goal is to help level the playing field and increase access for minorities, women, and disabled investment managers and consultants," Ms. Goldberg said in a news release. "In doing so, we seek to ensure that opportunities with the state pension fund will enhance economic equity in the business community for generations to come."
Going forward, MassPRIM will have to not only increase the diversity of the firms with which it does business with but also report its progress on these efforts to the state Legislature. The pension system must also consider whether its current investment policy discourages the use of minority investment managers through such restrictions as their years in operation, track record and minimum assets under management.
State Rep. Chynah Tyler and state Sen. Paul Feeney, both Democrats, sponsored the bill enabling partnerships for economic growth and job creation. The Massachusetts state Legislature passed the bill last week.
This push for increased diversity follows MassPRIM approving in March new proxy voting guidelines designed to increase board diversity, ban guns in the workplace and prohibit discrimination against people with disabilities.
