Assemblyman Mike Davis (D-Los Angeles), was successful in moving AB 17 Emerging Investments through Assembly Appropriations with a 12-5 vote.
“I am pleased that this measure will go to the Floor for a vote of the full body,” said Assemblyman Davis. “While our pension funds are acting in a progressive fashion with regards to contracting with smaller firms, there are no requirements in law that they target emerging investment firms to manage a portion of the portfolio. AB 17 will require CalSTRS to establish a recruitment strategy for using these firms, consistent with meeting their fiduciary obligations and investment objectives. Another critical piece is that it will require STRS to adopt a verifiable plan and strategy to increase participation for emerging managers and emerging brokers – we need greater transparency in how our pension funds are investing our money.”
AB 17 achieves diversity in the area of investments and contributes to the overall success of the pension fund while creating and supporting new opportunities in underserved markets. The bill is a re-introduction of AB 1919 (Davis 2010) which was passed by the Assembly but was held in Senate Rules Committee.
Supporters of the bill include: California State Conference of the NAACP (Sponsor), Service Employees International Union (SEIU 1000), Faculty Association of California Community Colleges (FACCC), American Federation of State, County, and Municipal Employees (AFSCME), California Federation of Teachers (CFT), United Teachers of Los Angeles (UTLA), California Labor Federation, New America Alliance and the National Association of Investment Companies.