Are you working with a fiduciary? What is a Fiduciary? In “The Fiduciary Principle: No Man Can Serve Two Masters,” the founder of The Vanguard Group, John (Jack) Bogle, explained the fiduciary duty as follows: “The fiduciary is expected to act at all times for the sole benefit and interests of the principal, with loyalty to those interests.” Nowhere in Bogle’s full definition (here) does he mention allowing a firm’s politics to guide it. But that’s exactly what has happened with ESG.
- The ESG Cartel
- Is Vanguard Voting Against Your Political Beliefs?
- Was Silicon Valley Bank a Victim of ESG?
- Biden Administration Destroying Retiree Fiduciary Protections
- ELON MUSK: “ESG Is the Devil”
- Regulators Investigating ESG Funds for “Greenwashing”
- EXPOSED: ESG’s Biggest Con Explained
- ILLEGAL? ESG Is Strangling Oil Exploration, and May Break the Law
- ESG Ratings Are a Subjective Mirage
ESG has turned into a money gathering, fee-charging, machine. Not everyone wants to save the world with their money. Because it may not be the best use of their money. Your Survival Guy recycles. But does ESG belong as a guiding force in a portfolio? Is it serving two masters? Quite simply, ESG was a way to gather assets and charge higher fees in a declining fee environment in the name of doing good with other people’s money.
If you pull up an advisor’s website, you can be hit with ESG promos right on their home page. If not, chances are you can still find it, but less so as it’s become a livewire issue. But it’s still there. And when there’s a pause in your advisor’s voice when you ask about the firm’s policy on ESG, you have to wonder if he’s trying to figure you out—serving two masters is no way to invest.
Action Line: Work with a fiduciary. And make sure he’s not serving two masters. When you’re ready, let’s talk.
Originally posted on Your Survival Guy.
