Asked about what Putnam has seen develop this year in terms of environmental, social and governance investing programs, and about how “ESG” fits into the discussion of active and passive management, Putnam Investments CEO Bob Reynolds had a lot to say.
Touchstone Creates Additional Equity Funds; AAM Builds Third High Dividend Value ETF; and HB&T to Build ESG-Centered Collective Investment Fund.
What would encourage more ESG offerings in retirement plans?
Continuing a trend that began in 2012, criteria related to climate change and carbon emissions remained the most important environmental issue for U.S. institutional investors.
BlackRock Launches Multiple ESG Funds and Tools; Fingage Managed Account Solution Added to LT Trust Recordkeeping Platform; Franklin Templeton Acquisition Expands Alternatives and Fixed Income Offerings; and more.
A global survey of institutional investors found more in the U.S. said ESG factors can be a source of alpha and risk mitigation, and more institutional investors overall said incorporating ESG factors into their investment approach is part of their fiduciary duty.
Forty-three percent incorporate ESG factors, up from 22% in 2013.
Responsible practices and policies have been shown to serve corporations better in the long run, strengthening their ability to meet the needs of their customers in a sustainable manner.
Capital Group adopts PFaroe; Reliance Trust chooses Northern Trust to support CITs; Vanguard introduces low-cost ESG ETFs; and more.
Political motivations and investor recommendations can result in choosing a low-performing investment for a retirement plan.
T. Rowe Price closes Emerging Markets Stock Fund; Fidelity merges active and passive funds in new TDF suite; SSGA decreases ETF expense ratios; and more.
GAO says in other cases where plans may face complexity, such as selecting a target-date fund or monitoring pension consultants, the DOL has provided general information, including items to consider and questions to ask. It suggests that the DOL do the same with ESG investing.
While not a new concept, materiality is essential to efficiently integrating ESG factors into the investment process; it all boils down to being able to determine which ESG factors are likely to be linked to stronger investment performance by identifying risks that are related to certain industries.
There are a number of investment vehicles to consider when drafting a plan menu that best suits the plan's participants.
In a new Field Assistance Bulletin, the DOL clarifies how ESG investment considerations should be made under ERISA if ESG policies are included in investment policy statements and when choosing QDIAs.
JULY adds Stadion ETF to platform; Nationwide increases fund offerings with new ETF; and Fairpointe Capital releases ESG-centralized approach.
The Department of Labor (DOL) has paved the ways for inclusion of environmental, social and governance (ESG)-screened investments to be included in defined contribution (DC) plan menus.