Posted on 01/12/2023 4:55:30 AM PST by Oldeconomybuyer
(Reuters) - Vanguard Group's decision last month to quit a key climate change coalition underscores how the retail investors who dominate its client base focus less on environmental, social and corporate governance (ESG) priorities than institutional investors.
Vanguard said last month it would drop out of the Net Zero Asset Managers (NZAM) initiative, whose members commit to making their investment portfolios emission-neutral by 2050. It said 80% of its close to $8 trillion in assets are in its index funds, which primarily attract retail investors.
These funds generally do not have discretion to include or exclude stocks beyond a pre-set mandate, and most do not account for carbon emissions.
Vanguard did not explain what changed since 2021, when it joined NZAM, but said it was responding to a desire of its clients to provide "clarity" and make its independence clear.
Vanguard's biggest competitors, BlackRock Inc and State Street Corp's asset-management arm, rely more on institutional investors including pension funds and foundations. Both BlackRock and State Street have stuck with NZAM.
(Excerpt) Read more at finance.yahoo.com ...
Vanguard will pick up an easy couple trillion in funds to manage by going un-woke.
good for Vanguard ... going back to what they were originally created for ...
Depends on what it was created for...
index tracking funds ... extremely low management fees ...
Retail is a thin-margin world, not compatible with strangulation socialism.
Over time, as performance figures come in, and investors gradually move money from the less profitable to the more profitable houses and issues, the question of fiduciary responsibility will damage the wokesters. Some lawsuits will also create drag on their zealotry.
Reality does have a way of correcting investment errors. it just takes a while.
Dear Larry Johnson,
I am writing in response to your recent message to our Board of Directors. I kindly ask that you accept my response on their behalf.
We believe that a company’s ability to address ESG concerns can influence its overall performance. Much like many other factors we consider that can impact a portfolio company’s performance, our investment professionals seek to identify, analyze, and integrate information about ESG risks and opportunities to help enhance their ability to make better investment decisions and pursue better outcomes for our fund investors.
We appreciate you taking the time to reach out and we look forward to continuing to serve you as a shareholder in the funds that we manage. If there is anything we can do to assist you, please call a representative at 1-800-225-5132. Representatives are available Monday through Friday from 8 a.m. to 8 p.m. ET.
Sincerely,
Tanner Myers
Senior Account Services Representative
T. Rowe Price Services, Inc.
It's also the wisdom of crowds that make free markets smarter than central planning by governments.
Consumers when voting with their wallets know better than a few bureaucrats.
Focus less on communism is more like it.
But don't worry, the Feral Government™ bureaucrats will use their "pen" to save Mother Gaia from the evil fossil fuel corporations.
They still vote your shares according to ESG. I asked.
“our investment professionals seek to identify, analyze, and integrate information about ESG risks and opportunities to help enhance their ability to make better investment decisions”
Vanguard is still an ESG company. They just said so.
That letter is from a Senior Account Services Representative at T. Rowe Price Services, Inc., not Vanguard.
Sorry, i got almost identical boilerplate from Vanguard.
No Fducking Way are they going back. They need to apologize to their shareholders.
Vanguard gave $1 million to BLM in the days after the Saint George of Floyd “celebrations”. When confronted about the sheer stupidity of that they said some jumble-mumble stuff about representing a wide range of views and valuing diversity blah, blah, blah.
Vanguard had been using their website to tell everyone how they “stood with” the Floydians, etc.
Those weaklings at Vanguard betrayed middle-class America a long time ago. And they will have to travel a long way to join up with them again.
Larry!
Thanks for sharing. That is some mealy-mouthed groveling for sure.
Yuck
We gave our Vanguard guy an earful about six months ago in our monthly conference call. I’m sure we aren’t the only ones. (I think we might’ve scared him a little - LOL!)
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