Why Add ESG Funds to Your Investment Menu?

Why Add ESG Funds to Your Investment Menu?

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An increasing number of investors want impact-driven investment vehicles. They want to avoid investing in companies that avoid diversity and inclusion, abuse labor, produce products or provide services that cause health or safety problems, or pollute the environment. However, trying to bypass such companies can make investing in many mutual and index funds a challenge. Because of this, environmental, social, and governance (ESG) funds are increasing in popularity, especially among younger investors. According to a survey conducted by Callan Institute, incorporation of ESG factors into the investment decision-making process increased to 42% in 2019 compared to 22% in 2013. But is it cost-effective and a good fit to include ESG funds in your plan’s investment menu? Learn more about ESG and how you should proceed if you’re interested in adding ESG funds to your investment line up.

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Millennials in Retirement Plans

Encouraging Millennials to Participate in Retirement Plans

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In 2016, millennials became the largest generation in the U.S. labor force with an estimated 56 million workers. Born between 1981 and 1996, millennials now account for more than one out of every three working Americans. Despite its size, this generation is often overlooked by plan sponsors due to their focus on the needs of those participants nearing retirement. Without retirement plans tailored to meet their own barriers, millennial workers struggle to save adequately for retirement. While an obvious roadblock may be lingering student debt, millennial would-be savers face several additional unique obstacles. This multifaceted struggle presents plan sponsors with both a challenge and an opportunity. To attract and retain the largest age group of U.S. workers, employers need to consider the unique needs of this generation in a retirement plan context. Read on to learn how to encourage millennials to participate in your retirement plan.

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Providing Socially Responsible Investing Options in Defined Contribution Plans

Providing Socially Responsible Investing Options in Defined Contribution Plans

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Offering a retirement plan to your employees is a great way to offer a competitive benefits package. But what about the investment options your plan provides? As a plan sponsor, you may often assess new investment options for your participants, largely considering the demographics of your participants, such as age, financial literacy, and other types of quantifiable data. Have you ever considered their societal values? Over the past few years, more plan sponsors are considering their participants’ societal values when developing investment menus to craft a strong array of options for their employees. This focus on environmental, social, and government issues within investing is typically known as Socially Responsible Investing (SRI) and is a great way for participants to “put their money where their mouths are” by making a societal impact as they save for retirement.

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