Financial Advisor recently wrote an article on environmental, social and governance (ESG) investment options in retirement plans. Turns out a lot of investors want it and not a lot of companies are meeting the demand.
According to a recent survey from Natixis Investment Managers, sixty-one percent of respondents said they would be more likely to contribute or increase contributions to their workplace retirement savings plan if there were more socially-responsible investments. Among plan participants not currently invested in ESG funds, only 13 percent said their company’s retirement plan offers ESG options.
Image Source: Natixis Investment Managers
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The universe of acceptable investments for ESG and SRI funds may be limited as compared to other funds. Because these funds do not invest in companies that do not meet their ESG or SRI criteria, and may sell portfolio companies that subsequently violate their screens, they may be riskier than other funds that invest in a broader array of securities.