Asset Managers Rap CFA Group’s Push to Stop Fund Greenwashing

Asset managers are urging an investment professionals’ organization to give way to the SEC and scrap an effort to combat greenwashing and other questionable marketing of ESG funds.

CFA Institute, the international group behind the Chartered Financial Analyst designation, has proposed voluntary guidelines on how funds should disclose their environmental, social and governmental (ESG) investing strategies.

Trade groups backed by BlackRock Inc., Vanguard Group Inc., and Fidelity Investments Inc. told CFA Institute that such guidelines are unnecessary and could confuse investors, according to letters CFA Institute recently posted on its website.

CFA Institute’s work comes as concern is growing that ...