Biden’s ESG investment rules threaten your retirement savings

President Joe Biden’s L.The central ministry recently announced new rules allowing wealth managers to use trillions of dollars of people’s retirement savings to conduct politics.

The administration is promoting environmental, social and governance investments, which will allow retirement fund managers to select company stocks based on their positions on social and environmental issues.

West Virginia’s anti-ESG crusade aims to bring the fight to Congress with 2024 run

Simply put, retirement savings is a way for companies to reduce their carbon footprint, allocate to race and gender, and other social justice measures that have nothing to do with ensuring high returns on workers’ lifetime savings. Used as a lever to force the establishment of fads.

For example, to reduce greenhouse gas emissions, asset managers sold traditional oil and gas companies such as Exxon and Chevron. How has it worked so far? Last year, these were the two best-performing stocks.

Socially conscious investing has been around for decades. There is no problem for individual shareholders to choose stocks that match their values. For example, I have a friend who refuses to invest in Starbucks because the coffee company opposes unionization of its employees. fine. It’s a free country.

But it’s an entirely different matter when multitrillion-dollar investment and retirement funds such as BlackRock inject their own biases into how people invest their savings without their knowledge or consent.

It gets even worse when these prejudices rob investors of high returns on their nest eggs.

Former BlackRock executive Terrence Keeley has filed a whistleblower complaint about the scam. wall street journal Since 2017, when the ESG craze took hold, these funds have delivered annualized returns of 6.3%, compared to 8.9% for the broader equity market. Investors lost 2.6% a year in retirement benefits. Nursing homes in Arizona and Florida require a down payment.

The insidiousness of the Biden administration’s new ESG rules allows portfolio managers of companies such as BlackRock to violate their fiduciary duty to clients by allowing ESG factors to override sound investment decisions. , which even implicitly encourages. Federal regulators are supposed to ensure sanity, not shrink retirement benefits.

To make matters worse, researchers at Columbia University and the London School of Economics have found that ESG funds may be falling short of their targets. The study compares his ESG records of US companies in 147 ESG fund portfolios to those in more than 2,000 non-ESG portfolios, and finds that ESG companies do worse when it comes to compliance with labor and environmental laws. I understand that there are many things.

The good news is that there is a backlash against ESG. Late last year, Vanguard, one of the world’s largest asset managers, wisely announced that it was withdrawing from its leading alliance on climate change, the Net Zero Asset Managers Initiative.

Going forward, ESG investment policies should be illegal otherwise Individual investors check this box to invest their money in such politically motivated investments.

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By the way, the victims of legal policy are often unionized workers (American truck drivers, factory workers, teachers) whose lifetime savings are at risk.

Bravo to Vanguard pulling out of ESG scams. If you’ve ever invested money in BlackRock or State Street, ask why they don’t do the same.