jim fink senior analyst personal finance scam

ESG investing is the consideration of environmental, social, and corporate governance factors when investing.Įxample of some of the 100s and 1000s of factors that can be considered from an ESG lens. The acronym ESG stands for environmental, social, and corporate governance. There is no one true definition.īut we still gotta know what we are talking about. If you ask 23 people about what ESG means, you’ll get 69 answers. What ESG?īefore you even know what the acronym ESG stands for, I think it’s important to understand the definition of ESG lies in the eyes of the beholder. So this is my earnest attempt to think through this mess as I write this post, and hopefully, you might find it useful too. The blatant hypocrisy, lies, doublespeak, and deceptive narratives are just scary, and I think investors will end up paying the price. But the more I learned about the mainstream version of ESG peddled by large asset managers, the more depressing it got. But over the past few years, as the noise about ESG got louder, shrill even, I became curious and started trying to figure out more. Initially, I didn’t think much of ESG and assumed that it must be just another trend because I knew very little. I like keeping track of all the shenanigans in the asset management industry, and I’m amazed at what asset managers are doing in the name of ESG. As Ben Hunt says, “They’re Not Even Pretending Anymore”. Perhaps the worst thing that has happened is that the Wall Street and Dalal Street machine has co-opted ESG and is milking it for all it’s worth.

While people like Jared Dillian have called it a bubble, others like Chamath have even called it an outright fraud, but take that with half a bucket of salt. I think the hype about ESG investing far outweighs the reality. I’m going to get skewered and probably be murdered in an eco-friendly way by the true believers for expressing scepticism but here goes. Companies, asset managers, pensions, wealth funds are becoming signatories of organizations that promote “sustainable investing practices” and are making pledges to cut carbon, oil, bring about gender equality, and waterboard CEOs and directors to do good. Everybody from company CEOs, financial advisors, central banks to my maid now wants to be ESG compliant. ESG consultants have sprung up like mushrooms after a rainy day. If you go by the reported numbers, there’s anywhere between $1 to $60 trillion of assets in these funds broadly defined as sustainable strategies.Īsset managers globally have been on an ESG fund launching spree. Millennials apparently, seem to be hellbent on investing in ESG funds and save the world. Goddamnit! Is there no way I can make a difference with my investments?Įvery investment survey of late shows ESG as the top consideration among investors and asset managers. This post is an exploration of what ESG is and the implications for you as an investor and also on the markets.ĮSG is just active management in a new lungi! The latest trend that looks like it is shaping up to be a megatrend is environmental, social, and governance (ESG) investing. Each of these megatrends have resulted in billion to trillion-dollar shifts and have fundamentally altered the asset management landscape globally.

In the past couple of decades, there have been several megatrends in asset management like the rise of index funds, target-date funds, thematic funds, smart-beta funds 🤮, ETFs, and so on. The best way through bullshit was to wade in, hold your nose with one hand and a grenade in the other, and cut straight to it.

Jim fink senior analyst personal finance scam