Did you know there’s a “Make America Great Again” fund that “tracks an index of US large-cap companies whose employees and political action committees are highly supportive of Republican candidates?”
Officially known as Point Bridge Capital, the MAGA fund not only exists, but it’s also outperforming both the S&P 500 and President Joe Biden’s beloved ESG funds.
As previously reported, an ESG fund is one that prioritizes environmental, social, and governance (ESG) issues. It’s basically a “woke” fund.
“There are many flavors of ESG funds; they may, for example, funnel investor money into wind and solar companies or those with diverse board members, or steer funds away from firms involved in fossil fuels,” CNBC notes.
ESG funds are, in essence, the opposite of Point Bridge Capital’s MAGA fund, and wouldn’t you know it, they’re underperforming the MAGA fund by a noticeable amount.
Analysis by Bloomberg shows that the MAGA fund is performing 14.8 percent better than ESG funds and 13.5 percent better than the S&P 500.
“More than three-quarters of the woke ESG funds the Biden administration is encouraging retirement planners to invest in have underperformed in the first half of this year,” according to the Daily Mail.
“A study by Investment Metrics found that a whopping 78 percent of global funds focusing on the principles of environmental, social and corporate governance fell more than 15 percent below their benchmarks in the first six months of 2022,” the Daily Mail notes.
This poor performance is occurring despite the president’s desperate bid to encourage Americans to invest in ESG funds.
Last month the Biden Department of Labor reversed a Trump-era rule that had effectively prohibited pension funds from investing retirees’ money into ESG funds.
The rule had made it so that pension funds had to prioritize maximizing profit over trying to save the planet. As a result, pension funds weren’t allowed to factor in an investment’s ESG score.
An “ESG score” is essentially a measurement of how “woke” a particular fund happens to be.
“Today’s rule clarifies that retirement plan fiduciaries can take into account the potential financial benefits of investing in companies committed to positive environmental, social and governance actions as they help plan participants make the most of their retirement benefits,” Secretary of Labor Marty Walsh said in a press release last month.
“The rule announced today will make workers’ retirement savings and pensions more resilient by removing needless barriers, and ending the chilling effect created by the prior administration on considering environmental, social and governance factors in investments,” Assistant Secretary for Employee Benefits Security Lisa M. Gomez added.
“Climate change and other environmental, social and governance factors can be useful for plan investors as they make decisions about how to best grow and protect the retirement savings of America’s workers,” she continued.
Biden reverses Trump-era rule, employers can now consider ‘climate change’, social factors in 401k investments https://t.co/qxsrVdHz6r
— American Wire News (@americanwire_) November 24, 2022
But the question now becomes, why would anybody want to invest in a relatively poorly performing ESG fund when they can invest in a superior MAGA fund?
Indeed, speaking with the Daily Mail, MAGA fund founder Hal Lambert noted that ESG funds have nothing to do with traditional investment principles.
“The movement is not based on investment principles. They’re pushing it to change the culture of corporate America that will ultimately hurt investors,” he said.
The MAGA fund is based on investment principles, which is why it boasts investments in industries that are profitable, regardless of their ESG score.
“Lambert said it was this embrace of oil and energy that has allowed his company to avoid the pitfalls of ESG and the S&P 500, which has less investments in the energy sector than ever before,” according to the Daily Mail.
“The MAGA fund has also been spared by the recent fall of the tech sector marred by supply chain woes as it only has a 3 percent stake in the industry as opposed to ESG funds and the S&P 500, which invest heavily in the sector,” the Daily Mail notes.
So why, if ESG funds are performing so badly, do funds keep adopting ESG standards? Possibly because of political pressure. Regardless, Lambert claimed that the ESG executives he knows all personally hate ESG.
“CEOs and CFO’s completely hate this. I have a friend who’s a CFO and he’s told me he’s lost so much time dealing with this woke nonsense. It’s effectively hurting his focus on growing earnings and revenue,” he told the Daily Mail.
And it’s putting these CEOs and CFOs at risk of being sued for failing their “fiduciary responsibility to investors.
Concluding his remarks to the Daily Mail, Lambert stressed that congressional Republicans need to take action against ESG now before it’s too late and this movement to make investing “woke” destroys their fundraising.
“The end goal for the ESG movement is to cut off corporate funding to Republican candidates. A company will adopt the ESG guidelines, and then someone will say, ‘How can we give to these GOP candidates if they’re against our new principles because they stand with oil and gas,'” he said.
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