Retirement fund managers have a fiduciary duty to act in the best interests of their beneficiaries and to make investment decisions based on financial considerations, considering the specific investment objectives and risk tolerance of the fund. While ESG investing may be a suitable option for some investors, retirement fund managers should not force their beneficiaries to invest in ESG funds if they do not align with their investment objectives or preferences.
The recent rule change that allows retirement fund managers to ignore their fiduciary duty to promote ESG investments has raised concerns about potential conflicts of interest and the ability of retirement fund managers to prioritize their own personal beliefs over the financial interests of their retirees.
By suing to stop this rule change, Attorney General John Formella has taken a step to ensure that retirement fund managers act in accordance with their fiduciary duty and prioritize the financial interests of their beneficiaries.
Ultimately, it is up to individual investors to determine if ESG investing is the right choice for their specific investment goals and preferences. Accordingly, retirement fund managers should put their fiduciary duty first—and make investment decisions based on financial considerations, rather than personal beliefs or preferences.
Sign our letter to Thank Attorney General John Formella for taking action to stop this egregious rule change and ensure fund managers are acting within their fiduciary duties to their shareholders.