Group of 58 asset managers demands transparency on funds' DEI policies

A group of 58 conservative asset managers sent a letter to more than 1,000 corporate CEOs last week, demanding that they let their shareholders know the extent of their use of diversity, equity and inclusion (DEI) practices as well as environmental social governance (ESG).

DEI and ESG practices harm staff, sales and stock prices in some cases and could expose the companies to liability if they violate civil rights laws, the letter said.

“It’s important that these companies recognize and understand that the DEI-ESG regime is coming to an end,” OJ Oleka, CEO of the State Financial Officers Foundation and a signer of the letter, said, according to the Epoch Times.

“DEI, the regime that it offers, is simply un-American,” he said. “It’s not good for the values that we stand for as a country ... that this is a nation of meritocracy, that societies need to function because of the rule of law.”

The election of Donald Trump to a second term could hasten the end of such practices, which favor some groups over others.

“The election results are really a jumping off point, I think, to truly winding down and bringing to an end DEI programs and practices inside of corporate America,” senior vice president of corporate engagement for the Alliance Defending Freedom (ADF) Jeremy Tedesco said. “The Trump administration is going to most likely create serious legal and reputational consequences for companies that continue down that path.”