Debunking the Myths of ESG Investing
I was brought up in a family of modest means by parents who counted on Social Security and a small pension for their retirement. The stock market was a mysterious entity and my parents considered the market as legalized gambling created for, and used by, those who circumvented an honest living. They were not alone in their mistrust of the stock markets, which is a perception still exists today: 65% of respondents in a recent survey* indicated they “mistrust a lot” or “mistrust a little” the financial services industry. Only 2% of respondents said they trust the financial services industry “a lot” and nearly 83% said they believe their interests are secondary to corporate profits. Yet traditional pensions have gone by the wayside, and most of us will need to rely on our own savings to fund at least part of our retirement. If only there were a way to invest in companies that treat employees well, care about the environment and are financially prudent. If you could invest cost effectively and achieve returns that compete with some of the most successful managers. This may seem altruistic and, hence, too good to be true. Welcome to the ever-evolving world of ESG investing.