But, an interpretive bulletin proposed by the Obama administration's Department of Labor (DOL) would change all of that by outlining new fiduciary rules for brokers. The rules cleverly politicize investment choices by encouraging pension fund managers to weigh environmental, social, and governance factors when selecting investment choices.
Yes, it’s true. When “all matters are equal,” the new rules would require brokers to weight environmental, social, and governance concerns greater than economic return.
In a Wall Street Journal article, Andy Kessler notes:
Environmental, social, and governance issues may have a direct relationship to the economic value of the plan’s investment. In these instances, such issues are not merely collateral considerations or tie-breakers, but rather are proper components of the fiduciary’s primary analysis of the economic merits of competing investment choices.
Furthermore, the folks those who worship at the altar of environmentalism are going to hurt the most aren’t those belonging to the so-called 1%. Nope...not at all. Those who will be most hurt will be the middle-class, public service wage earners. Their pension funds already have an accumulated deficit of $111B in Illinois and $236B in California.
That’s what The Motley Monk calls “enlightened” Democratic Party governance... based entirely upon “feelings not fundamentals.”
Let the discussion begin...
To read the DOL's proposed rules, click on the following link:
To read Andy Kessler's article in the Wall Street Journal, click on the following link: