April 16, 2024

Strive Warns Your Money Might ‘Vote’ Against Your Beliefs

NASHVILLE, Tenn.—Americans with investments within the “Big Three” monetary firms—BlackRock, State Street, and Vanguard—may even see their cash “voting” for issues they don’t imagine in, warns the highest lawyer at Strive Asset Management, the agency based by former Republican presidential candidate Vivek Ramaswamy.

“I think, for a long time, we’ve been really focused on, where is money in politics, right?” Alexandra Gaiser, the final counsel at Strive, tells “The Daily Signal Podcast” in an interview on the National Religious Broadcasters conference in February. “So, you have all sorts of campaign finance restrictions.”

“Unfortunately, that hasn’t covered Americans investments,” she notes. “Many Americans don’t realize that they’re voting every quarter for things they don’t believe in, because the proxy voting system is a duopoly. It’s controlled by ISS and Glass Lewis.”

Institutional Shareholder Services and Glass, Lewis & Co. vote on behalf of shareholders at firm shareholder conferences, they usually typically support environmental, social, and governance (ESG) objectives from a left-leaning perspective.

“Then, most Americans have their investments through one of the ‘Big Three,’ State Street, BlackRock, and Vanguard,” Gaiser provides.

She recalled Vanguard, the place she has belongings invested “from a past life,” giving her an possibility about how the corporate would vote on behalf of her shares.

She says she had 4 choices: one openly ESG choice; an “I-agree-with-management” possibility, which might additionally are likely to vote for ESG; one “sort of Vanguard-special-sauce option of like, just trust us,” which she additionally thinks would prioritize ESG; and the choice to abstain.

“Nowhere was there an option to say, ‘Please vote in a way that we think is going to make you more money in the future, in the long run,’” Gaiser notes.

While some describe Strive as “anti-woke,” or “anti-ESG,” the corporate doesn’t describe itself that method, the lawyer notes. “We’d say we’re pro-shareholder,” targeted on giving buyers the perfect return for his or her cash.

She describes a number of the “cruel ironies” of the ESG movement, saying “a lot of these goals are really shortsighted.”

“What we see on carbon emissions goals is, often you’re punishing countries that have much cleaner burn methods, much cleaner energy, and getting them to reduce, reduce, reduce,” Gaiser explains. “It drives prices up, up, up, and countries like Russia and Venezuela, China, are not committed to these same goals. They’re polluting out the wazoo, and they become your main suppliers of energy.”

“Well, that can’t be good for the overall environment, right?” she asks.

Similarly, the Strive lawyer wonders why firms are so targeted on skin-deep range for boardrooms when company boards don’t televise their conferences.

“You want a diversity of views, in terms of risk, corporate backgrounds. The experience people bring really does matter,” she says. “But it shouldn’t be what you look like in the mirror that determines your value to a corporate board.”

Gaiser says investments “shouldn’t be politicized.” Investing “should be a really boring sort of mathematical exercise.”

She agreed that the motto of Strive may very well be “Make Investment Boring Again.”

Listen to the complete interview under.

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