New Haven Mayor Toni Harp, President of African-American Mayors Association, Leads Reform of City Pension Investment Policy with Potential for Nationwide Impact
The change encourages trustees to hire “emerging managers” including minority, veteran, and women-owned firms
(New Haven, CT) Today, the City Employee Retirement Fund of New Haven (CERF) approved a measure that will dramatically increase the use of diverse asset managers. This measure allows investors to consider “emerging managers,” including minority-owned, veteran-owned and women-owned firms, bringing an essential diversity of perspective and experience to the asset management of the City of New Haven.
Emerging managers are considered investment managers with less than $3 billion of assets under management or with shorter track records, and can be considered by CERF for all asset classes. The measure instructs trustees to limit an investment allocation to no more than 20 percent of the firm’s assets under management.
“The inclusion of this emerging managers provision in our city investment policy is a tremendous step forward for New Haven,” said New Haven Mayor Toni Harp, who also serves as President of the African American Mayors Association, which represents more than 500 African American mayors throughout the country. “When our asset managers come with a successful track record from diverse backgrounds, and bring new perspectives to the work, that helps keep our investments viable and safe. This provision means we can support diverse and inclusive workforces in every sector and among every entity with which the City of New Haven does business. Research has proven that diverse asset managers perform as well, if not better, as majority firms. Our financial economy should be open for everyone and I encourage my colleagues around the country to do the same, and am committed to seeing my fellow African American mayors take up this cause in their towns.”
The Policemen & Firemen's Retirement Fund is expected to vote on the same language in July or August.
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