Mega-sized endowments, pension funds and hedge funds have the ability to move the markets and change investing trends. So when two of the largest begin moving into a style or sector, it can be fruitful for us regular retail investors to pay attention.
In this case, two of California’s largest pension funds (CalPERs & CalSTERs) have recently made environmental, social and governance (ESG) issues a major theme to their investment process. While ESG investing has been generally been disappointing in the returns department over the last decade or so, the pension funds shift into the portfolio style certainly could bring better prospects in the years ahead.
Overall, California’s decision could be the catalyst to make ESG investing more main stream and profitable.
Read more: http://www.sfgate.com/business/investopedia/article/Big-Money-Is-Moving-To-Socially-Responsible-4386804.php#ixzz2Ow9yCT00