CA AB2337

Prohibits public retirement system boards from investing employee retirement funds in companies engaged in predatory investment practices involving displacement of rent-regulated housing residents, conversion to market-rate units, or unauthorized rent increases.

Requires retirement boards to develop and implement a policy by June 30, 2011 that includes prohibitions on predatory investments, alignment with United Nations Principles for Responsible Investment, and requirements for investment managers to comply in writing.

Mandates annual reporting to the Legislature on implementation and compliance with the predatory investment policy, including impacts on tenants in rent-regulated housing and investment performance.

Excludes from the definition of predatory practices investments that create or redevelop rent-regulated housing units with replacement housing and relocation benefits, as well as publicly-traded real estate investment trusts and foreclosure sales.

Allows boards to discontinue use of investment managers that make materially inconsistent investments after the policy becomes effective.