Politics Over Pensions: The 1st Annual Report Card on Investment Fund Managers & Proxy Voting Behavior - Pension Politics

Politics Over Pensions: The 1st Annual Report Card on Investment Fund Managers & Proxy Voting Behavior

The ESG agenda has been thrust into the spotlight by the Biden administration’s insistence that retirement fund managers be permitted to pursue a politicized investment agenda. President Biden wants to enable hundreds of billions of pension fund dollars, which have been earned by millions of Americans, to be channeled into plans that don’t maximize returns, but instead advance left-wing objectives related to ESG and other issues.

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Investment management companies have trillions of dollars of Americans’ lifetime savings under management. These companies, which own roughly 75 percent of the shares of America’s publicly traded corporations, have a legal obligation to try to earn the highest return for their clients, who have placed their lifetime savings in these firms’ legal custody. These clients are tens of millions of retirees and other American savers.

But this study finds that dozens of major investment houses are routinely violating their legal obligation – known as “fiduciary duty.” Through a process known as proxy voting, these investment houses are supporting a leftist political agenda that’s known as ESG, which stands for “environment,” “social,” and “governance,” but which often encompasses other left-leaning priorities related to race, sex, and ethnicity. By putting their own political biases first, their clients are foregoing billions of dollars in shareholder returns.

DISCLAIMER: Pension Politics is intended for educational purposes only.  It is not intended for financial advice.  Please contact a professional financial adviser before making any decisions.

You work and pay into your pension

The funds go to investment managers who have the responsibility of growing your pension

They invest your pension in companies like Disney and McDonald's, becoming a shareholder

As shareholders, the investment managers get a vote in important company decisions

Instead of voting for resolutions that would benefit the company, and the customer, many managers support resolutions calling for “climate justice” and “racial equity audits”

These ESG policies hurt company performance, which means lower returns for your pension

ESG isn't an investment strategy; It's a political agenda.

ESG is being used to hijack shareholder voting.

Investing with ESG depresses returns.

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