Akademiker terminates DKK 3.2bn mandate with State Street citing ESG concerns
Danish pension fund Akademiker has confirmed the termination of its investments with US manager State Street, amid an increasing debate on stewardship alignment between long-term asset owners and US managers
Akademiker, which manages approximately DKK 157 billion (£22.9bn) on behalf of workers in the higher education sector in Denmark, ended its collaboration with State Street following a review of its ESG processes. CIO Anders Schelde said: “I can confirm that we have decided to terminate our relationship with State Street following an ESG review, which resulted in the lowest possible score. As a result, we can no longer use State Street as an external equity manager.”
State Street had managed a European equity mandate for Akademiker since 2005, with the mandate amounting to DKK 3.256bn ($400m) at the end of last week. Following the divestment, State Street will be removed from the fund’s list of asset managers once the transition is complete, a spokesperson told Net Zero Investor.
This divestment aligns with Akademiker’s shift towards in-house management, with the pension fund planning to manage the assets internally rather than assign them to an external manager.
The move comes as asset owners across Europe express growing concerns over stewardship alignment, with many larger US managers becoming increasingly reluctant to support climate resolutions.
State Street has departed from climate coalition CA100+ in early 2024 and has shown very little backing for social and environmental resolutions put forward in the 2024 AGM season, according to ShareAction’s latest Voting Matters report.
A spokesperson for State Street commented on the decision:“As shared by AkademikerPension, the decision to reduce the use of external managers was prompted by an exercise to increase insourcing capabilities. As a manager with approximately $50 billion in AUM for Nordic Institutional investors, a 35% year-over-year increase in AUM, State Street Global Advisors looks forward to continued discussions with MPIM on future opportunities.”
Last month, UK master trust The People’s Partnership announced a £28bn divestment from State Street, also citing concerns over stewardship alignment. Similarly, UK master trust Now:Pensions ceased its collaboration with BlackRock and Legal & General last year, again due to concerns over stewardship alignment.
A coalition of 26 asset owners issued a statement last month aimed at providing managers with clearer stewardship expectations and empowering long-term asset owners to raise concerns with their managers.
$1.5trn asset owner coalition sets out guidelines on stewardship alignment
The People's Pension moves £28bn out of State Street citing concerns over stewardship alignment
