CalSavers launches tender for ESG investment option

The CalSavers Retirement Savings Board, the body that operates CalSavers, the state-provided retirement plan for employees whose employers do not provide one, on February 18 Posted a request for proposals (RFP) for a new ESG-focused investment option.

The board is seeking proposals from qualified investment managers to provide ESG-focused mutual funds or other suitable vehicles for CalSavers to replace its current ESG investment option. The current ESG option comes with a suite of target date funds (default), a global equity option, a core bond option and a money market fund. Now, the board is willing to consider a standalone equity option, a standalone fixed income option, or an option that has both equity and fixed income exposure.

The Board is looking for a company or companies with the best investment option(s) to create a new ESG offering(s) for CalSavers. The agreement will be for three years; the Council would have the option of extending the one-year contract up to three times.

The selected supplier must:

  • provide one or more ESG-focused mutual funds or other type of investment appropriate for the IRA structure of the CalSavers program;
  • provide an investment product that will have no minimum account balance, or waive any such minimum;
  • work with the program administrator and the investment consultant to provide the board with any information needed to evaluate the fund.

The board will monitor the selected ESG option(s) by selecting one or more benchmarks that will be used to ensure that the selected option achieves its long-term objectives.

All responses to the RFP must be submitted in hard copy and soft copy (via USB drive or disk) and received by the Board no later than 4:00 p.m. Pacific time on March 25, 2022.

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