CalSTRS hired Nordea Asset Management to run $450 million in its global stars equity strategy.
The $341.4 billion West Sacramento-based California State Teachers’ Retirement System’s allocation will be managed by Nordea’s fundamental equities team, which takes a sustainability-focused approach integrating environmental, social and governance risk factors into all fundamental investment decisions. The team works with Nordea AM's responsible investments team to ensure companies are assessed for their contributions to ESG objectives, alongside traditional financial criteria, a news release said.
The commitment was funded by reallocations from other strategies in the portfolio, a CalSTRS spokesperson said. Further details were not provided. The investment represents a new investment manager relationship for the SISS team, she added.
All of Nordia's ESG STARS equity strategies are also net-zero aligned, and the carbon footprint is currently 61% below that of the MSCI ACWI index benchmark.
"We are excited to expand our relationship with the team at Nordea Asset Management,” said Kirsty Jenkinson, investment director at CalSTRS, in the news release. “The sustainability-focused approach of the global stars equity strategy aligns closely with the mandate of the sustainable investment and stewardship strategies portfolio. Additionally, Nordea has been a valuable partner in our stewardship efforts focused on meeting our pledge to achieve a net-zero portfolio by 2050 or sooner,” she said.
CalSTRS had a total of $4.7 billion in public and private investments under its SISS program as of July 31, according to its website.
Since July 2023, CalSTRS and Nordea AM have partnered on an engagement initiative aimed at encouraging investee companies to join the Oil and Gas Methane Partnership 2.0. That framework works to reduce global methane emissions, targeting a 45% reduction among member companies by 2025, and 60% to 75% reduction by 2030. The initiative includes 17 asset owners, one money manager and one investment adviser, representing more than €3.7 trillion ($4.04 trillion) in assets.
“We are honored to have been selected by CalSTRS to manage a portion of its sustainability-focused equity portfolio through our global stars equity strategy,” CEO Nils Bolmstrand added in the release. “For over three decades, we have been successfully developing solutions designed to deliver attractive long-term returns while bringing about positive impact. Sustainable investment is an essential part of our Nordic DNA, and we look forward to supporting CalSTRS with our distinct investment approach to deliver returns with responsibility.”
Nordea AM has €264 billion in assets under management.
