I’ve been raising the alarm about politically motivated investing – and we just made big progress in stopping this kind of investment management.
My bill, the Protecting Retirees Savings Act, just passed the House of Representatives! This bill would protect Iowans’ retirement savings accounts from politically-motivated investment decisions that ultimately reduce investor returns.
Here’s the deal: Current law allows investment managers to make politically-motivated investment decisions, rather than a focus on maximizing returns for the investor.
Just two firms make recommendations on 97% of shareholder votes nationwide – and often times they make those recommendations based on political motivations. Then, investment managers accept this advice without even reviewing them through a method called robovoting. This causes major conflicts of interest that reduce returns for Iowans – accounts that are invested for any reason other than maximizing returns experience a 14% decrease in value on average.
Bottom Line: My bill ensures that when Iowans invest in their future retirement, they should be able to trust that those accounts are managed in a way that maximizes investor returns – not to make a political statement. Next stop, the Senate!