There has been a lot of discussion about the power that investment managers have to act politically, whether that is around ESG, or in supporting the agendas of one political party or another.
Peter, I agree with you in the sentiment, yet disagree with the rest of your argument.
“As agents, investment managers can only act in their clients best interests, not their own belief systems.”
Not really. One word is missing which changes everything: “ As agents, investment managers can only act in their clients best FINANCIAL interests, not their own belief systems.”
Investment funds’ clients certainly comprise of people with DIFFERENT, often opposite interests. The only interest that they have in common is FINANCIAL one.
If an investment fund manager comes up with a legal scheme to make money for ALL her customers, why should not she exploit it?
Customers, who disagree with the initiative, can easily signal their preference with their feet by pulling their money out.
The situation is completely different in the case of corporations where managers should not be giving away money of their shareholders to the causes of their, executives’, preference.
Equal opportunity was replaced with equal outcome.
Positive discrimination became the norm, quality and merit flew out the window.
Just ask the ivy league colleges. deny gifted asians and permit "quota admissions" because of "rayciss" past polices that must be accompanied by "reparations".
last i looked no race has a monopoly on any outcome, good or bad.
also - all discrimination, positive or negative is abhorrent.
Peter, I agree with you in the sentiment, yet disagree with the rest of your argument.
“As agents, investment managers can only act in their clients best interests, not their own belief systems.”
Not really. One word is missing which changes everything: “ As agents, investment managers can only act in their clients best FINANCIAL interests, not their own belief systems.”
Investment funds’ clients certainly comprise of people with DIFFERENT, often opposite interests. The only interest that they have in common is FINANCIAL one.
If an investment fund manager comes up with a legal scheme to make money for ALL her customers, why should not she exploit it?
Customers, who disagree with the initiative, can easily signal their preference with their feet by pulling their money out.
The situation is completely different in the case of corporations where managers should not be giving away money of their shareholders to the causes of their, executives’, preference.
Gair xcall. I made the remarks i the context of investment and should have bee clearer.
And Americans were supposed to be self-governing too;-)
Many thanks for all the work you put into your posts! I always learn something.
Best wishes to you and your loved ones for a very merry Christmas and a happy new year!
Thanks very much!
Merry Christmas and a Prosperous New Year to you too :>)
Political indoctrination
Equal opportunity was replaced with equal outcome.
Positive discrimination became the norm, quality and merit flew out the window.
Just ask the ivy league colleges. deny gifted asians and permit "quota admissions" because of "rayciss" past polices that must be accompanied by "reparations".
last i looked no race has a monopoly on any outcome, good or bad.
also - all discrimination, positive or negative is abhorrent.
Merry Christmas to you too :>)