Well, this is interesting. Just noticed this on my home page in Personal Capital:
Personal Capital's take is arguing both sides. They agree with bolded but think ESG vehicles are financially material and should be considered as fund choices. [They still can but could receive additional scrutiny under proposed rule].
This is clearly a management friendly move by the current administration's DOL that I assume is a countermeasure to the current trend of activist investors trying to push social issues through.
ESG = Environmental, Social, and GovernanceQuote:
ERISA plan fiduciaries may not invest in ESG vehicles when they understand an underlying investment strategy of the vehicle is to subordinate return or increase risk for the purpose of non-financial objectives. Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan. Rather, ERISA plans should be managed with unwavering focus on a single, very important social goal: providing for the retirement security of American workers.
Personal Capital's take is arguing both sides. They agree with bolded but think ESG vehicles are financially material and should be considered as fund choices. [They still can but could receive additional scrutiny under proposed rule].
This is clearly a management friendly move by the current administration's DOL that I assume is a countermeasure to the current trend of activist investors trying to push social issues through.