November 7, 2018
Today, the Main Street Investors Coalition released a new video showing some of the faces of Main Street – the retail investors who want fund managers to maximize their investments and not use their money to support political and social issues.
The opinions shared by these retail investors reaffirms the reason why Main Street Investors Coalition was formed: to give retail investors a voice in how their savings are being used:
“That’s a big priority of our investments, is making sure we have enough money to meet all of our future goals.” – Lacie, Maryland
“I’m hesitant to allow other people to manage my money in the first place, so my manager should not abuse the trust or power that I place in them.” – Thomas, New York
“I don’t want someone who puts their own agenda before my agenda.” – Charles, New Jersey
“They should rigorously adhere to their fiduciary duty, their sole duty, which is to maximize my returns.” – Nan Bauroth, North Carolina
Nan Bauroth, one of the retail investors in the video and an active member of the Main Street Investors Coalition Advisory Council has expressed her reasons for joining the Coalition in multiple publications:
“That’s exactly why our coalition was formed: To remind those responsible for managing our Americans’ retirement funds that their foremost duty is fiduciary in nature. The Main Street Investors Coalition advocates for changes to help preserve the investment opportunities that have made the American Dream possible for generations. The Coalition’s ultimate point is that the paramount duty of money managers must be maximizing the return on shareholder investments.”
Also in the video, Main Street investors from around the country reaffirm the results of a prior survey of 1,000 investors with assets in exchange traded funds (ETFs). The survey found 78 percent of the people invested in ETFs did so because they want low fees and consistent returns. Meanwhile, only 11 percent selected ETFs due to the expectation the funds will use their size to influence companies’ behavior or the expectation the funds will invest in worthy political and social causes.
Another study by the Spectrem Group found pensioners are concerned that their pension funds may spend too much time on shareholder voting issues. Members also wanted pension funds to provide a clear rationale for why pension funds voted one way or other in proxy contests. Pensioners where also unaware of the level of “alternative investments” in their fund and “upon learning of recent underperformance of alternative energy assets in the fund, many pensioners expressed a desire for less investment in this sector.”
Despite unfounded attacks from fake groups who allegedly represent “shareholders”, retail investors want their hard-earned investments to generate returns that allow them to meet their goals. This is why the Main Street Investors Coalition will continue to push for changes will allow them to meet that objective.