Fidelity, BlackRock Reject Trump Limits on 401(k) ESG Investing

The world’s largest asset managers are speaking out against a Trump administration plan that would make it more difficult for them to incorporate environmental, social and governance factors when making investment decisions, a move that could limit green investing in 401(k) plans.

Fidelity Investments wrote in an 11-page letter to the U.S. Department of Labor that the proposal’s assumption that ESG investment strategies sacrifice returns, increase risks and promote goals unrelated to financial performance isn’t “well grounded or supported by much of the emerging data.” BlackRock Inc. said the recommendation is “overly prescriptive and burdensome.” State Street Global Advisors, Putnam Investments and Legal & ...