OPINION: Biden's ESG investment rules threaten your retirement savings
Socially conscious investing has been around for decades. I have no problem with individual shareholders choosing stocks that comport with their personal values. I have friends, for example, who refuse to invest in Starbucks because the coffee company is fighting unionization by employees. Fine. It's a free country.
But it's an entirely different matter when trillion-dollar investment and retirement funds such as BlackRock inject their own biases into the way they invest people's savings without their knowledge or consent. President Biden speaks to African leaders gathered for the U.S.-Africa Leaders Summit, Dec. 14, 2022, in Washington.Terrence Keeley, a former executive at BlackRock, blew the whistle on this scam in the Wall Street Journal by noting that since 2017, when the ESG fad took hold, these funds have had an annual rate of return of 6.3% – versus 8.9% for the stock market as a whole. Investors lost 2.6% per year on their retirement funds.
What is insidious about the new Biden administration ESG rules is that they permit and even tacitly encourage portfolio managers at firms such as BlackRock to violate their fiduciary duty to their clients by allowing ESG factors to trump sound investment decisions. Federal regulators are supposed to be ensuring the soundness of retirement funds, not shrinking them.
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