February 20, 2020 | IPFI USA
At the World Economic Forum in Davos, Switzerland, Greta Thunberg demanded an end to all investments in fossil fuels. While Ms. Thunberg may have good intentions, her demands are indicative of the economic ignorance found in today’s activists. Unfortunately, BlackRock CEO Larry Fink has fallen victim to the same flawed reasoning. Just ahead of the […]
January 30, 2020 | IPFI USA
On January 27, the Bipartisan Policy Center hosted a discussion on the SEC’s proposed reforms to the proxy voting process. Tom Quaadman, Executive Vice President of the U.S. Chamber Center for Capital Markets Competitiveness and Pat McGurn, Special Counsel and Head of Strategic Research and Analysis at Institutional Shareholder Services examined the key elements of […]
January 14, 2020
As the new year begins, fiduciaries must remain vigilant against misguided abuse of our nation’s pensions. Those in charge of California’s retirees have a duty to manage the Los Angeles City Employees’ Retirement System (LACERS) with the sole objective of increasing returns. Forced divestment and politically-motivated financial decisions have been shown to compromise that outcome. […]
Adherence to Fiduciary Responsibility
The Institute believes that officials residing over pension funds should be held to a high degree of fiduciary responsibility, consistently making decisions on investment that will benefit the long-term growth and security of the fund. Consistent dividend yield, resistance to market flux and strong corporate credit ratings are just a few variables that must be taken into account by these individuals. Often times outside interests have pressured pension funds and other entities to divest from certain investments under political pressures, which would subject pension funds to lower financial returns. This divestment would violate a pension fund’s fiduciary responsibility.
Balanced Economic, Social, and Governance (ESG) Factor Investment
Accounting for ESG factors in investments can prove to be advantageous with greater transparency and consistently high returns. With more than 80% of all corporations releasing ESG factor reports, options are plentiful for the investment of pension funds into holdings with positive ESG outlook. ESG factors should not dictate a political agenda for guiding public investment decisions.
Long term Pension-Fund Return
When investing with pension funds and other long-term payout entities it is imperative that long-term stock stability be sought after in the investment process. Part of the responsibility of the managers of pension funds is to identify long-term, low market volatility investments that will allow for prolonged growth and a sustaining of pension budget health for years on end.