Larry Fink knows better than you. At least, that is the message the world’s largest asset manager is sending following the January letter announcing BlackRock’s shift towards ESG activism. Fink threatened to use the firm’s massive influence to undermine boards that do not adhere to BlackRock’s agenda, saying, “we will be increasingly disposed to vote […]
Equal accountability needed for all companies listed on U.S. exchanges
With the American economy taking its first steps toward re-opening after months of lockdown, businesses and public officials alike must now confront staggering losses across the market and evaluate how to best focus their recovery efforts. Public pensions, already struggling with staggering unfunded liabilities in many states, have been hit especially hard by this crisis. […]
IPFI Issue Brief: Behind BlackRock’s ESG Shift
BlackRock, the world’s largest private asset manager, has over the past two years begun to shift its investment strategy, placing a much greater emphasis on environmental, social, and governance (ESG) factors and boosting the presence of ESG funds in its portfolios. In a newly released issue brief, the Institute for Pension Fund Integrity delves into […]
Alternative Investments: An Overview
In 2006, alternative assets made up just 11% of state pension investments. By 2016, that number had shot up to 26% of pension fund allocations. These investments almost entirely came out of what had previously been allocated to traditional equity investments, with fixed income sources’ share of pension fund investments remaining largely unaltered. But what […]
Robo-Voting: An Overview
Robo-voting: An Overview With the focus of government, business, and the media all centered on the singular issue of coronavirus, attention toward the upcoming proxy shareholder voting season has been moved to the back burner. Over the next few months, shareholders of publicly traded companies will be voting on various resolutions, including who sits on […]
Fallout from COVID-19 Demonstrated Rose-Colored Perspective on Pension Returns
As of the writing of this article, global markets have experienced the largest drop since the Great Depression as a result of fallout from the COVID-19 virus, erasing all gains from the economic upswing of the last two years. It is likely that with a global quarantine in effect, markets will continue to reel in […]
Bucking the Trend to Rescue New Jersey’s Pension
As three of New York City’s five pension funds move to divest from fossil fuels, one state government in the neighborhood is bucking the trend to move away from corporations operating in the carbon-based fuel industry. Governor Phil Murphy of New Jersey has warned against the impulse to sever ties completely with industries or companies […]
The Misguided Movement to Divest
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 […]
Case for Proxy Reform Glaringly Evident After Latest Debate
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 […]
LACERS Must Stand Up Against Divestment Pressure
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. […]