To protect Americans’ savings and retirement accounts, U.S. Sen. Marsha Blackburn (R-TN) joined several of her Republican colleagues to introduce legislation that would ensure asset managers are in the business of maximizing returns for investors, not pushing their own political agenda.
“Asset managers such as Blackrock and Vanguard should principally focus their investments on yielding the highest return for investors,” Sen. Blackburn said on Aug. 31. “This bill would ensure investment fund managers make decisions that offer the greatest financial benefit to their clients, not push woke priorities.”
The Ensuring Sound Guidance Act, S. 2282, which Sen. Blackburn cosponsored on July 12 alongside bill sponsor U.S. Sen. Tom Cotton (R-AR), would require investment advisors and retirement plan sponsors to principally consider financial factors, such as maximizing returns and minimizing risk, according to a bill summary provided by the lawmakers.
“These companies should not employ ESG [environmental, social, and governance] standards to prioritize investments in companies that push woke climate change initiatives while pulling investments from traditional energy businesses,” said Sen. Blackburn.
If enacted, S. 2282 would maintain investor choice and ensure that focusing on the best investment outcome is the default practice for funds managing Americans’ investment and retirement savings, the summary says.
S. 2282 is the companion bill to the same-named H.R. 4237, sponsored on June 21 by U.S. Rep. Andy Barr (R-KY) and original cosponsor U.S. Rep. Bill Huizenga (R-MI) in their chamber.
“Our proposed legislation safeguards the savings efforts of hard-working Americans,” Rep. Barr said. “This critical legislation not only guarantees that advisers make prudent investment choices based on financial factors, but also empowers savers to decide how their money is invested.”