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.
Investors surveyed by Natixis cited strategies they've been using to diversify their portfolios.
Voya Investment Management has pledged to adopt six basic principles to promote and support the use of environmental, social and governance investing programs.
American Century releases first ETFs, and Putnam reveals two ESG fund offerings.
Findings suggest the opportunity is ripe for smart beta ETF products, but more industry education is needed.
Columbia Threadneedle Premieres Strategic Beta ETF; and Change Finance Launches New Sustainable Investing ETF.
American Century reorganizes income fund; Nuveen releases ESG U.S. Aggregate Bond ETF; Voya enhances ETF model; and more.