HCS is officially a PRI Network Supporter 
HCS is officially a PRI Network Supporter
The global market crash of 2008 and continuing economic shocks have shaken many of the investment and savings trusts and institutions that we, as a society, rely on as “guaranteed.” Trillions of dollars vanished due to reckless, over-levered loans short-term bets that failed.
Working families and retirees whose savings and retirement assets have been ravaged, are searching for answers and alternatives to the mismanagement of our funds (and the use of short-term, ultra-risky bets, many of which turned out to be fraudulent).
Our money--the assets in retirement accounts and mutual funds, insurance companies, endowments, college savings funds, etc.—actually accounts for a lion’s share of the economy. This share has increased since 1980, and this capital literally drives markets. These trusts--with total assets amount to trillions of dollars--invest globally and are part of the giant pools of capital and institutional investments flowing to markets.
Powerful Worker Assets
The sheer size of global pension and institutional assets and the role they can play in influencing investment at a global level provides a basis for greater participation by their owners in “capital stewardship.” Indeed, other global trends (corporate malfeasance, soaring executive compensation, etc.) require “active” owners to be more proactive and diligent in how and where their capital is being invested in order to ensure responsible management and build long-term investment value.
Since pension funds are in fact the deferred wages of workers; there is increasing recognition that pension investments should reflect the intrinsic interests of its “owners”—working people and retirees. They should not only yield competitive financial returns, but also contribute to the long-term vitality of societies, economies and environments (and even social standards).
The trustees of pensions and similar funds should know that the investments made today affect jobs and quality of life for their beneficiaries, not just because of the monetary return, but also in the quality of economic development and community livability.
The first duty of a pension trustee is to oversee the prudent investment of plan assets, solely in the interests of plan participants and beneficiaries. In crafting their particular fund’s investment strategy, pension trustees must make workers’ retirement security their first priority and must never jeopardize investment returns in order to promote non-financial goals.
This section will provide a basic framework for best practices in responsible investment, and some examples of worst practices.
