PLANADVISER - September/October 2021 - 14

trends
Before Adding ESG Investments
How advisers can help employers make their lineup more sustainable
THE US SIF Foundation has launched a guide for defined contribution
(DC) plan sponsors interested in sustainability. US SIF
says sponsors of private-sector DC retirement plans are just
beginning to meet participant demand for sustainable funds.
A 2020 analysis for the US SIF Foundation, performed by ISS
Market Intelligence's BrightScope* platform of 58,590 401(k)
plans, found that less than one-fifth had assets in funds that
BrightScope considered " socially conscious. "
Other surveys find that employers worry about risking
their fiduciary status, should they add environmental, social
and governance (ESG) options to their plan. US SIF, therefore,
suggests sponsors take these steps:
1) Learn more about sustainable investing and related
performance and fiduciary matters. A 2020 Freshfields
study, including interviews with policymakers, lawyers
and senior investment professionals, says integrating ESG
policies into investment practice and decisionmaking is
increasingly part of regulatory and legal requirements for
institutional investors, which are also asked to consider
clients' sustainability-related preferences and to report on
how they meet these obligations.
talking points
Adviser Firms Record
High Growth
The investment adviser
industry continued its record
growth over the past year,
with nearly 14,000 Securities
and Exchange Commission
(SEC) registered investment
advisers (RIAs) now
operating, and managing
almost $110 trillion in assets
for about 61 million clients.
These data show that the
number of SEC-registered
advisers, their clients, assets
managed and staff size all
have hit new record highs.
Source: Investment Adviser Association
More RIAs Pick Up
And Move
About 3% of all RIAs
changed their headquarters
during the COVID-19
pandemic-significantly
more than would have in
a typical year. Over 25%
who made this change
moved out of New York
City. In total, 74 RIAs moved
their headquarters out of
the city between last April
and this April. This represents
roughly 21% of the
total 345 RIAs who relocated
during that time.
Source: SmartAsset
Oregon Saves Small
Employers Money
Approximately 80% of
employers using the
OregonSaves state-run
retirement plan option
reported no out-of-pocket
costs associated with the
program. Midsize businesses,
having 10 through 49
workers, were more likely
than were businesses with
nine or fewer workers to
report out-of-pocket costs,
possibly because a larger
staff translates to higher
administrative costs.
Source: Pew Charitable Trusts
14 | planadviser.com September-October 2021
2) Gauge participants' interests. Sponsors should survey
participants as to ESG investing, first clearly explaining it.
3) Discuss implementation with a consultant and/or
plan administrator. The sponsor can start by asking its
current plan administrator and any external advisers about
their capabilities regarding ESG funds.
4) Choose a fund or funds, and monitor performance.
Later, when the fund manager or consultant begins evaluating
the fund's financial performance, ask him to ensure
that the fund meets return expectations, net of fees, in relation
to its benchmark and peers; that it is maintaining its
stated investment style and approach to sustainability; and
that it keeps the fees comparable to the fund's peer group.
5) Educate participants about ESG investments and
the employer's decision. Plan administrators, sustainable
fund managers and/or consultants should be able to
provide information about a lineup's sustainable funds.
-Amanda Umpierrez
*BrightScope is an ISS Market Intelligence business and is part of Institutional
Shareholder Services Inc. (ISS), which owns and operates PLANADVISER.
http://www.planadviser.com

PLANADVISER - September/October 2021

Table of Contents for the Digital Edition of PLANADVISER - September/October 2021

Masterminds of the Plan
"PLANADVISER’s 2021 Top 100 Retirement Plan Advisers"
How to Optimize Connections
Defining Roles
Building Strategic Partnerships
Different Strokes
Cybersecurity Considerations
Provider Recommendations
PLANADVISER - September/October 2021 - Cover1
PLANADVISER - September/October 2021 - Cover2
PLANADVISER - September/October 2021 - 1
PLANADVISER - September/October 2021 - 2
PLANADVISER - September/October 2021 - 3
PLANADVISER - September/October 2021 - 4
PLANADVISER - September/October 2021 - 5
PLANADVISER - September/October 2021 - 6
PLANADVISER - September/October 2021 - 7
PLANADVISER - September/October 2021 - 8
PLANADVISER - September/October 2021 - 9
PLANADVISER - September/October 2021 - 10
PLANADVISER - September/October 2021 - 11
PLANADVISER - September/October 2021 - 12
PLANADVISER - September/October 2021 - 13
PLANADVISER - September/October 2021 - 14
PLANADVISER - September/October 2021 - 15
PLANADVISER - September/October 2021 - 16
PLANADVISER - September/October 2021 - 17
PLANADVISER - September/October 2021 - Masterminds of the Plan
PLANADVISER - September/October 2021 - 19
PLANADVISER - September/October 2021 - 20
PLANADVISER - September/October 2021 - 21
PLANADVISER - September/October 2021 - "PLANADVISER’s 2021 Top 100 Retirement Plan Advisers"
PLANADVISER - September/October 2021 - 23
PLANADVISER - September/October 2021 - 24
PLANADVISER - September/October 2021 - 25
PLANADVISER - September/October 2021 - 26
PLANADVISER - September/October 2021 - 27
PLANADVISER - September/October 2021 - How to Optimize Connections
PLANADVISER - September/October 2021 - 29
PLANADVISER - September/October 2021 - 30
PLANADVISER - September/October 2021 - 31
PLANADVISER - September/October 2021 - Defining Roles
PLANADVISER - September/October 2021 - 33
PLANADVISER - September/October 2021 - Building Strategic Partnerships
PLANADVISER - September/October 2021 - 35
PLANADVISER - September/October 2021 - Different Strokes
PLANADVISER - September/October 2021 - 37
PLANADVISER - September/October 2021 - Cybersecurity Considerations
PLANADVISER - September/October 2021 - Provider Recommendations
PLANADVISER - September/October 2021 - 40
PLANADVISER - September/October 2021 - Cover3
PLANADVISER - September/October 2021 - Cover4
https://www.planadviserdigital.com/planadviser/september_october_2021
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https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
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