The Oklahoma State Treasurer’s office will continue improving Oklahoma’s economy and public investments through time-tested strategies to increase our state’s growing $15.5 billion portfolio. Today’s investment landscape contends with environmental, social and governance or ESG. An idea that once addressed only social responsibility, the name grew in scope and prevalence to become a big part of today’s public narrative. Keeping ESG out of investing is necessary due to its broad goal complexity, unmanageable reporting framework and heavy-handed mandates.
ESG is not intended to create shareholder value. During the November Board of Trustees meeting of the Teachers’ Retirement System, members voted to divest $184 million in pension funds because certain financial institutions were deemed by my office to be supporting ESG causes negative to Oklahoma industries Joseph Cappello, Deputy Chief Investment Officer, told the Teachers’ Retirement System board,
“We are very comfortable if you choose to divest.” Cappello detailed the $123 million in index funds would cost the system $32,700 or 0.026 percent to divest, the $61 million bond portfolio has no estimated cost, as selling this security traditionally has no commissions.
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