The CalSavers Retirement Savings Board, the body that runs CalSavers, the state-provided retirement plan for employees whose employers do not provide one, on Feb. 18 issued a request for proposals (RFP) for a new investment option focused on ESG factors.
The Board seeks proposals from qualified investment managers to provide ESG-oriented mutual funds or other vehicles appropriate for CalSavers to replace its current ESG investment option. The current ESG option is offered alongside 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 one or more of the following: a stand-alone equity option, a stand-alone fixed income option or an option that holds exposure to both equities and fixed income.
The Board seeks a firm or firms with the best investment option(s) to create a new ESG offering or offerings for CalSavers. The agreement will be for three years; the Board would have the option of extending the contract by one year up to three times.
The selected vendor is to:
- provide an ESG-oriented mutual fund(s) or other investment type appropriate for the IRA structure of the CalSavers Program;
- provide an investment product that shall not have an account minimum balance, or waive any such minimum;
- work in concert with the program administrator and investment consultant to provide the Board any necessary information needed to evaluate the fund.
The Board will monitor the selected ESG option(s) by selecting a benchmark or benchmarks that will be utilized to ensure the selected option is meeting its long-term objectives.
All responses to the RFP must be submitted in hard copy and electronic copy—by thumb drive or disc—and received by the Board no later than 4:00 p.m. Pacific Time on March 25, 2022.
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