State Street Corp. is offering its first environmental, social and corporate governance commingled cash collateral reinvestment strategy, spokesman Brendan Paul confirmed in an email.
Eligible securities lending clients of State Street's agency securities lending program will have the opportunity to consider the strategy to reinvest cash collateral. The agency lending team of State Street Global Markets partnered with State Street Global Advisors to offer the commingled cash collateral reinvestment strategy that follows short-term investment guidelines, while considering R-Factor, State Street's ESG scoring system, as a component in making its investment decisions.
The strategy is currently available only to pension fund clients that participate in State Street's agency lending program and not otherwise available to the public.
"This launch affords State Street's institutional client base yet another opportunity to express their focus on ESG and reaffirm their attention to socially responsible yet prudent investing through a securities lending program," said Francesco Squillacioti, global head of client management – securities finance at State Street Global Markets, in a news release.