Tag: ESG investing

One reason DC plans are outpacing DB plans in terms of ESG adoption has to do with a difference in pressing priorities, rather than doubts among DB plans of the viability or usefulness of ESG.

Northern Trust Creates Private Equity and Hedge Fund Service Group; Impax Introduces ESG-Focused Fund; OneAmerica to Offer Russell Investments Managed Accounts; and more.  

Transamerica launches Stable Value account for retirement plans;  Fidelity offers third ESG investing option; Vanguard ESG ETFs to commence trading in September; and more.

Seventy percent of employers use target-date funds (TDFs) as the default investment option for their retirement plans, yet ESG versions of these portfolios are virtually nonexistent, according to ClearPoint.

Plan sponsors can anticipate additional guidance and legislation on a number of retirement plan issues.

Given some of the strong language used to warn retirement plan fiduciaries against placing other interests ahead of the financial benefit of their participants, the latest DOL bulletin on the topic of ESG investing has created some confusion.

There is some lingering uncertainty about the role of smart beta institutional investing, as more than 50% of asset owners in the U.S. say they remain uncertain on the best approach for their particular purposes.

Russell Investments Presents New ESG Score Framework; Merrill Lynch Reveals New ESG Portfolios; EDHEC-Risk Institute Reexamines Retirement Products; and more.

“Ultimately, we believe that an active and tactical approach to investing in green bonds may allow investors to better manage risk factors, such as those relating to currencies and rates,” says Yvette Klevan, managing director and portfolio manager/analyst at Lazard Asset Management.

Hartford Funds lowers fees for six ETFs; oekom research joins ISS, renames brand; T. Rowe Price releases multi-strategy fund; and more.

An open letter penned by Connecticut State Treasurer Denise Nappier presents an articulate defense and endorsement of ESG investing programs—in this case suggesting divestment from gun manufacturers may be in the best long-term financial interest of the state’s pensioners and other stakeholders.

Some investors cite the concern that publicly owned companies may be “greenwashing” reported data to enhance their image from the ESG investing perspective, cited by 37% in a new Natixis survey.

Voya Investment Management has pledged to adopt six basic principles to promote and support the use of environmental, social and governance investing programs.

Callan says this is partly due to multiple years of investor education around ESG coming to fruition.

Among tips Mercer suggests is evaluating litigation vulnerability at a time when lawsuits against higher education 403(b) plan sponsors are higher than ever.

“Plan sponsors that prioritize their goals and objectives strategically have the opportunity to both enhance participant outcomes and mitigate risks.” says Sarah Fitzmaurice, DC & Financial Wellness leader, Mercer.

State Street launches tool to deliver transparency in ESG investing; Vanguard releases latest fund to complement existing index and ETF offering; and Hartford Funds presents first NextShares fund.