State pension funds and corporate social responsibility: do beneficiaries’ political values influence funds’ investment decisions?

This study explores the underlying drivers of US public pension funds’ tendency to tilt their portfolios towards companies with stronger corporate social responsibility (CSR). Studying the equity holdings of large, internally-managed US state pension funds, we find evidence that the political leaning of their beneficiaries and political pressures by state politicians affect funds’ investment decisions. State pension funds from states with Democratic-leaning beneficiaries tilt their portfolios more strongly towards companies that perform well on CSR issues, and this tendency is intensified when the state government is dominated by Democratic state politicians. Moreover, we find that funds which tilt their portfolios towards companies with superior CSR scores generate a slightly higher return compared with their counterparts. Overall, our findings indicate that funds align their investment choices with the financial and non-financial interests of their beneficiaries when deciding whether to incorporate CSR into their equity allocations

Should defined contribution plans include private equity investments

This paper evaluates the pros and cons of including private equity fund investments in defined contribution plans. Potential benefits include higher returns and improved diversification as well as a relatively safe method for accessing investments previously only available to institutions and the very wealthy. Despite these enticing benefits, they need to be weighed against potential challenges and costs that may arise from creating this broader access to private funds. The complicated structure and uncertainty around the mechanism to provide required liquidity backstops may bring increased fees or even disrupt the private fund model

Calculating with light using a chip-scale all-optical abacus

Machines that simultaneously process and store multistate data at one and the same location can provide a new class of fast, powerful and efficient general-purpose computers. We demonstrate the central element of an all-optical calculator, a photonic abacus, which provides multistate compute-and-store operation by integrating functional phase change materials with nanophotonic chips. With picosecond optical pulses we perform the fundamental arithmetic operations of addition, multiplication, and division, including a carryover into multiple cells. This basic processing unit is embedded into a scalable phase-change photonic network and addressed optically through a two-pulse random access scheme. Our framework provides first steps towards light-based non-von Neumann arithmetic