‘The DOL in November 2022 released its final rule—“Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights”—stipulating that plan fiduciaries may (but not must) consider ESG factors when they are expected to have an impact on investment outcomes . The rule took effect on Jan. 30, 2023.’
ESG funds are effectively a danger for unwary retirees and can have negative financial impact for retiree funds. Allocating investment in ESG funds only furthers negative factors in our economy and allows poor investment strategy to fund ideological values.
Trump corrected this once and he should do it again.
Enviromental, Social and Governance scores are less about protecting the environment, society and government and more about who is in control. I am concerned about the way the European Union has made these mandatory and the way they exert control over US companies.
Free the 401k Mentions ESG, but bundles other content. ESG funds in 401K removes any fiduciary duty to manage the fund in the way the investor would expect. ie, instead of making money it funnels money to ideological goals.
I agree, 401K asset managers like Black Rock, prioritize ESG scores over profits. This means they use other people’s retirement accounts to promote their ideological values. They do this even when earning a high ESG score makes the investment less profitable.
88% of public companies now have ESG initiatives.
You said Trump corrected this once? I was wondering if you could explain? I am not being critical. I really just want to understand.
“Department of Labor (DOL) proposed an amendment to the Employee Retirement Income Security Act (ERISA), forcing retirement plan fiduciaries to base their investment decisions only on traditional financial factors.”
This change was around June 2020. It’s always murky finding historical information on Trump policies because the media only portrays him in a negative light.
Although ESG funds were a “may include” option at the time my employer ONLY provided ESG funds to select from.
This is how many companies moved from a “may choose” to the “only choice.”
Thus returning to a policy of not for consideration is the only sound decision to protect employees and their retirement investments.
On a personal note, about the time ESG funds were changed to “may include” my 401k fiduciary had started a campaign to “help” people change their allocations. It’s all very insidious when you consider that the possibility of inclusion can lead to a number of abuses.
Profits not politics.
Targets companies strategically aligned with shareholder interests
ESGX will invest your money in companies that focus on profits, not politics or trendy activisms of the moment. By tracking the AJN Shareholders First Index , the fund will seek to invest in business-focused, profit-oriented U.S. companies that prioritize their duties to shareholders and are best positioned to outperform in current economic and monetary conditions. https://www.shareholdersfirstetf.com/fund-info