Wealth Management
Investors have continued to pull billions from ESG (environmental, social, and governance) funds in early 2025, amid growing political backlash and shifting federal policies under President Trump’s administration.
In the first quarter alone, ESG funds saw $6.1 billion in outflows, marking the tenth straight quarter of declines, according to Morningstar. Much of this retreat has been attributed to the administration’s aggressive rollback of climate and DEI (diversity, equity, and inclusion) initiatives, including pulling out of the Paris Agreement and cutting subsidies for green energy.
Despite political resistance, ESG investing remains popular among younger investors and retains institutional support, particularly in pro-ESG states like California. Analysts argue ESG strategies still offer long-term value, positioning investors in companies better equipped to handle emerging environmental and social risks.
Finsum: Advocates maintain it's a smart approach to building resilience and returns in an evolving global economy, and necessary to combat emerging environmental issues.
While overall annuity sales have cooled slightly from their post-pandemic highs, persistent economic unease may be fueling renewed demand. In Q1 2025, total annuity sales reached $105.4 billion—just 1% below the all-time high recorded in the same quarter last year, according to LIMRA.
The organization attributes this strength to rising consumer anxiety, which in March drove sales to their second-highest monthly total on record. Registered index-linked annuities (RILAs) continued to shine, with sales up 21% year over year, bolstered by product innovation and growing interest from both insurers and investors.
Meanwhile, fixed indexed annuities saw a 7% decline but still posted the fifth-highest quarterly sales ever at $26.7 billion.
Finsum: For those looking for security with some upside in their retirement portfolios annuities products could provide an outlet.
U.S. farmers are facing a sharp drop in soybean and pork exports to China just as planting season ramps up, signaling serious trouble ahead. With China previously accounting for a major share of demand, especially for these two products, the sudden decline in sales — some dropping more than 70% — is hitting a fragile agricultural sector hard.
The current trade dispute, now broader and more severe than the 2018 tariff standoff, comes with no clear support for producers and is compounded by related conflicts with other trade partners like Canada. This creates a supply chain crunch, not just at the point of export but also in key input materials like fertilizer, making the hit to farmers multifaceted.
Domestic consumption isn’t likely to absorb the surplus either, especially as U.S. demand for pork remains soft and efforts like increasing biodiesel requirements are not enough to offset lost international sales.
For many growers, the loss of access to a market of over a billion consumers could be a lasting blow with no easy substitute.
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Lawsuits against retirement plan sponsors have increasingly focused on excessive fees and the failure to select lower-cost investment vehicles, like Collective Investment Trusts (CITs), which many sponsors are surprised to learn have existed longer than mutual funds.
CITs, which will reach their centennial in 2027, operate much like mutual funds in structure and oversight, but typically offer lower fees and greater flexibility in pricing. Larger retirement plans have rapidly adopted CITs, with plans over $500 million in assets now allocating about 41% to them, up significantly from just a few years ago. Despite their benefits, some plan sponsors hesitate to adopt CITs due to their lack of publicly searchable tickers and unfamiliar regulation by the OCC rather than the SEC.
However, CITs offer key advantages, including fiduciary governance and the potential for customized pricing through asset aggregation or specialized share classes.
With education and communication, sponsors and participants can overcome initial concerns and access the cost-efficiency and fiduciary alignment CITs provide.
Annuities are gaining popularity as a retirement income solution, especially after the SECURE Act 2.0 made it easier to include them in 401(k) plans. A LIMRA survey showed that 70% of non-retired workers would likely choose an in-plan annuity, attracted by the promise of guaranteed lifetime income.
Reflecting this demand, annuity sales hit a record $432.4 billion in 2024, marking the third consecutive year of growth. Annuities can be a good choice if you're worried about running out of money, seeking better returns than bank CDs, or have maxed out other retirement accounts.
Immediate and deferred annuities offer different ways to secure lifetime income, while fixed annuities provide guaranteed growth with higher yields than many traditional savings options.
Finsum: Ultimately, whether an annuity fits your needs depends on your financial goals, risk tolerance, and desire for income stability in retirement.
American Energy Fund (AEF) has broadened its asset-backed investment lineup, opening access to domestic oil and gas projects for qualified investors. The new opportunities include ventures in the Permian Basin and North Texas, featuring on-site briefings and a focus on operational transparency.
AEF believes that in today’s turbulent markets, energy investments are regaining appeal as a reliable asset class. These offerings are limited to accredited investors, meaning participants must meet specific wealth, income, or professional standards set by financial regulators.
By tailoring these opportunities to sophisticated investors, AEF aims to blend performance, visibility, and compliance into its energy investment strategy.
Finsum: The current administration is no doubt making it friendlier for the energy sector, but will tariffs hinder any regulatory ease.