Fast Exit From Russian Funds for 401(k)s? Yes, Under ESG Plan

Private-sector retirement plans can’t move as fast as their counterparts in the public sphere to divest from Russian securities in reaction to the outbreak of war in Ukraine.

Many retirement investors have swiftly gutted their holdings in Russian assets since hostilities broke out in eastern Europe, highlighting the speed and agility with which large public pension plans can target money to direct social investing.

A U.S. Labor Department proposal would change that by equipping private-sector pensions and 401(k)s with environmental, social, and corporate governance investment factors to apply a similar kind of flexibility to the rest of the retirement investment ...