The Market Institute’s Charles Sauer has a new piece in the Washington Examiner on the Department of Labor’s guidance on fiduciaries and how they manage the wealth of their clients. Some wealth managers are sacrificing the financial returns of their clients int he name of Environmental, social, and governance activism (ESG).
“The basic idea is that fiduciaries for private pension beneficiaries cannot invest in socially responsible index funds, religious belief investment funds, or environmental and sustainable investment funds, if the investments de-emphasize financial returns in favor of a non-monetary agenda. As with all investment decisions, making a particular investment means forgoing another possible investment. Again, fiduciaries should always strive to make the best economic investment for their clients.”
Luckily for investors, “the Trump administration is looking to codify this simple idea and help refocus fiduciaries on their jobs: making money for their clients.”
