We’ve warned that the fad of ESG investing – where investment houses like BlackRock pick stocks based on their commitment to the environment and social justice, rather than company profitability – is a blatant violation of these funds’ fiduciary duty to investors and retirees.
We’ve also noted that ESG funds have underperformed the overall stock market over the past several years because they divested their portfolios of fossil fuel companies – which have had very high returns of late. ESGs are running about two percentage points per year below index funds. This lower return can cost a retiree more than $100,000 in their nest egg over time.
One of the worst initiatives pushed on investment funds by leftist environmental groups is a climate change concept called Net Zero – which means every company in the portfolio must be on a path to zero carbon emissions.
This crazy activist policy has been endorsed by 290 investment houses with a whopping $66 trillion of assets. We thought you might want to know where the major money managers stand on this and adjust where you do your investing accordingly.
The four largest villains:
JPMorgan Asset Management
London-based Legal & General
By contrast, these three major investment firms aren’t putting politics over profits (and higher returns) with your retirement money: