Asset management firms with pro-defined contribution viewpoints may want to think twice about asking public sector defined benefit plans for contributions to their funds.
That’s because the American Federation of Teachers union yesterday released a list of 34 investment managers with directors, managers, advisers or executives linked to three organizations, including the Manhattan Institute, the Show-Me Institute and StudentsFirst, that opposes DB plans.
FINalternatives also reported on the AFT’s initiative.
Included in the list is Dimensional Fund Advisors, whose co-founder Rex Sinquefield is president of the Show-Me Institute, and K2 Advisors, which is majority owned by Franklin Resources, whose COO Jennifer Johnson is a director of StudentsFirst.
"This is about transparency—a right to know," said AFT president Randi Weingarten, in an interview.
"America's workers and pension trustees deserve to know if the asset managers with whom they are investing their hard-earned retirement savings are also aligned with organizations advocating for the elimination of those same pension plans."