Constellation Brands increased its ownership interest in Canopy Growth Corporation to 38%, and received warrants that if exercised would increase its ownership interest to >50% in the subsequent 3 years. Canopy Growth is the largest Canadian company in the production, processing, and distribution of cannabis and hemp products, with approximately 36% share of the Canadian market. Since cannabis products are still illegal in the US, questions arose as to the ESG and legal risks of our investment in Constellation Brands, and particularly in the Constellation Brands bonds that were issued to fund its investment in Canopy Growth. Constellation Brands management assured investors there were no legal restrictions on its investment in Canopy Growth, and that Constellation Brands and Canopy Growth are following all federal and provincial laws. Additionally, CalPERS’s internal compliance group confirmed that marijuana was not part of the tobacco divestment program, and there was no standalone marijuana divestment requirement, there was no restriction for investing in the Constellation Brands issued to fund the Canopy Growth investment.