UK- and South Africa-based global active asset manager Ninety One announced that its decarbonization-focused Global Environmental strategy has been awarded a $150 million mandate by California State Teachers’ Retirement System (CalSTRS), one of the largest public pension funds in the U.S.

Ninety One’s Global Environment strategy is a high conviction, concentrated global equity portfolio that provides exposure to the multi-decade structural growth opportunity from decarbonization, by investing in the equities of companies expected to contribute to the transition to a lower-carbon global economy. The $4.2 billion focuses on three key decarbonization areas, including renewable energy, resource efficiency and electrification, and is managed by Deirdre Cooper, Head of Sustainable Equity, and Portfolio Manager Graeme Baker.

Sangeeth Sewnath, Managing Director, Americas, at Ninety One, said:

“Ninety One’s Global Environment strategy’s unconstrained and focused approach, combined with a long-term investment horizon and active engagement, is a powerful way to invest in decarbonization. It provides California’s educators with access to the structural tailwinds to participate in outperformance and real impact. This partnership is a meaningful step as we continue to build our footprint in North America.”

CalSTRS has set a series of sustainability-related investment targets over the past few years, including a commitment in 2021 to achieve a net zero emissions portfolio by 2050, and a pledge the following year to reduce greenhouse gas emissions across its portfolio in half by 2030.

Kirsty Jenkinson, Investment Director at CalSTRS, said:

“Our mission is simple, to secure the financial future and sustain the trust of California’s educators. We believe that Ninety One’s Global Environment strategy aligns with our commitment to deliver financial performance while simultaneously creating positive sustainability outcomes.”