Maine Becomes First State to Pass Fossil Fuel Divestment Bill

The state pension fund has more than $1 billion invested in companies such as Chevron, Exxon, and ConocoPhillips.

Maine has become the first state to pass legislation that bans public investments in fossil fuels. The bill requires the $17 billion Maine Public Employee Retirement System (PERS) to divest $1.3 billion from fossil fuels within five years, and orders the state Treasury to do the same with all state funds.

“Fossil fuels have fanned the flames of the climate crisis, and investing in them is bad for both our retirees and our environment,” State Rep. Margaret O’Neil, a Democrat and the bill’s sponsor, wrote in the Portland Press Herald. “Continuing to invest state retirement funds in companies that produce fossil fuels runs counter to the ambitious environmental goals Maine has set for itself.”

Under the new law, the state treasurer and the Maine PERS board of trustees are not allowed to invest the assets of any state pension or annuity fund in any stocks or other securities of any fossil fuel industry company. This includes any subsidiary, affiliate, or parent of any companies that are among the 200 largest publicly traded fossil fuel companies, as set by carbon in the companies’ oil, gas, and coal reserves. Though Maine is the first state to pass this type of legislation, other states, including New York, have considered similar moves with their pension funds.

Maine PERS currently has more than $1.3 billion invested in fossil fuel companies, such as ExxonMobil, Chevron, and ConocoPhillips, including $850 million invested through private equity investment funds, according to environmental organization Stand.earth.

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The bill also requires the treasurer and Maine PERS board to divest any stocks or other securities, whether they are owned directly or held through separate accounts or any commingled funds, by Jan. 1, 2026. However, it also stipulates that this must be done “in accordance with sound investment criteria and consistent with the board’s fiduciary obligations.” Exempt from the restrictions are short-term investment funds that commingle commercial paper or futures.

Additionally, the state treasurer and the Maine PERS board will have to report on the divestment’s progress to the joint standing committee of the legislature that has jurisdiction over appropriations and financial affairs by the first of January in 2023, 2024, and 2025. They are also required to make a final report to the committee by Jan. 1, 2026.

“Curbing climate change requires, in part, intentional government action, crafted with fiduciary obligations in mind,” Maine Treasurer Henry Beck wrote in a statement of support for the bill. Beck noted that the state’s trust funds’ equities are only 3% invested in the energy sector, adding that “this low exposure illustrates another point: that there has been a recent move away from energy, especially in fossil fuels by certain public funds.”

Moneta Taps Aoifinn Devitt as CIO

Former CIO of the Chicago Policemen’s Annuity and Benefit Fund becomes the first woman to manage the firm’s portfolio.

By Michael Katz

Aoifinn Devitt

Moneta Group Investment Advisors has tapped Aoifinn Devitt to become the first female CIO to oversee the registered investment adviser (RIA)’s $27.4 billion in assets under management (AUM). Although Moneta is based in Missouri, Devitt will work from Chicago, where she lives.

Devitt joins Moneta from investment banker Federated Hermes, where she was head of investment for Ireland, and was responsible for developing investment management oversight processes for Hermes Fund Managers Ireland Limited. Prior to Federated Hermes, Devitt was CIO of the $2.6 billion Policemen’s Annuity and Benefit Fund of Chicago. She also founded Clontarf Capital, a pan-alternatives research and consulting firm.

The Irish-born Devitt succeeds Bill Hornbarger, who had been Moneta’s CIO since 2009, but left the company to become CIO at Benjamin F. Edwards in September.

“I don’t believe in dictating strategies and I will not be excluding anything,” Devitt said in an interview with CIO, adding that she is “excited to bring my alternatives expertise” as well as her global experience to the firm, having worked in Europe and Asia.

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Devitt said that while she doesn’t believe there will be hyperinflation, she thinks “we will see a higher rate of inflation than we are used to” and said that one of her priorities going into the job will be to make sure that the portfolio is resilient against rising inflation. She noted that real estate, infrastructure, and equities are good hedges against inflation.

Regarding environmental, social, and governance (ESG) investing, Devitt said “I think we’re at a tipping point in time when ESG risks are really just like any other risks,” adding that ESG risk assessment “whether it’s climate change resilience, good governance, or ensuring a company does right by employees—those are basic hygiene factors in investing.”

In her spare time, Devitt hosts a podcast called “The Fiftyfaces Podcast,” where she shares inspiring stories that showcase role models from diverse backgrounds, particularly in business and finance. When asked which other CIOs Devitt admires, she cited Mark Steed, CIO of the Arizona Public Safety Personnel Retirement System (PSPRS), and Angela Miller-May, CIO of the Chicago Teachers’ Pension Fund, noting that Miller-May “pushes new boundaries” with diverse managers.

“Aoifinn’s impressive skill set and extensive experience across asset classes and management structures make her the perfect fit for the CIO role,” Moneta Chief Operating Officer Keith Bowles said in a statement. “We’re thrilled to welcome her to our senior leadership team and are eager to see her make her mark.”