In a recent government meeting, officials discussed significant changes in proxy voting and asset management strategies. This year, over $28 billion in assets have been redeployed, with more than $13 billion directed to investment firms based in Texas. This shift means that over half of the fund's assets are now Texas-centric.

The meeting highlighted a new approach to proxy voting, developed by Boyer Research. This method emphasizes a more stringent review of proxy voting guidelines, particularly focusing on management performance and shareholder value. The fund will vote against management in cases of chronic underperformance and will support proposals that enhance shareholder value. Notably, the fund will oppose any proxy driven by environmental, social, and governance (ESG) initiatives that do not clearly link to shareholder benefits.

The officials noted that the administration of proxy votes can be complex, given the high volume of votes and the challenges in managing them. However, the collaboration with Boyer Research and the adoption of an ESG skeptic policy have streamlined this process. The fund was the first state to implement this policy in April, and a recent review showed that it was effectively administered, with only one exception found among thousands of votes.

This meeting underscored the fund's commitment to maximizing returns while navigating the evolving landscape of investment management and proxy voting.