CalSavers Retirement Savings Board, Sacramento, will search for an ESG investment option beginning in February, said Katie Selenski, executive director, in an email.
The board approved issuing an RFP at its meeting Monday because the current ESG investment option, the BNY Mellon Sustainable Balanced Fund, may "cease to exist" by the end of 2022, according to board meeting materials.
According to those materials, if the fund's manager, BNY Mellon subsidiary Newton Investment Management, informs the board at a later date it can continue to provide the current fund for CalSavers participants, the RFP process could be canceled.
A BNY Mellon spokesman said in an email: “The BNY Mellon Sustainable Balanced Fund was designed specifically for large government sponsored retirement programs, like CalSavers. Should the Fund continue to have limited asset gathering, we will consider product modifications that we believe would be in the best interest of the Fund and its shareholders.”
The RFP will be issued Feb. 14 on the state of California's procurement website. Registration is required. Proposals will be due at 4 p.m. EDT on April 8, and the board is tentatively scheduled to make a selection May 24.
CalSavers Retirement Savings Program is California's state-run auto-IRA savings plan, which had more than $173 million in assets as of Dec. 31.
