Bloomberg established the Plan to allow employees to fund retirement/other financial needs and provide different investment options to enable participants to invest according to varying risk tolerances/savings time horizons/financial goals. Objectives of the Plan include:
1) Providing opportunities to supplement retirement income
2) Providing prudent investment options meeting the needs of Bloomberg’s workforce
3) Offering competitive investment options
4) Encouraging high participation rate.
Bloomberg integrates ESG into selection criteria/monitoring processes - consideration is given to include funds managed by firms committed to incorporating ESG factors into investment processes - alongside other factors: investment manager organization, fees, investment process, asset levels, performance. Bloomberg believes ESG issues pose risks/opportunities for portfolios/portfolio companies and real assets and impact investment risks/returns. Also, Plan participants may have strong views on aligning investments with personal values and utilize ESG criteria when making investment decisions.
For monitoring, goal for investment funds is to produce consistent, competitive results vs. benchmark/peer group/risk characteristics. Investment Committee uses three-/five-year annualized, time-weighted total rates of return, net of fees, as primary performance measurement. Managers’ investment philosophy/process/staff are also evaluated regularly. ESG considerations are included in evaluation of investment options. We expect investment managers to integrate ESG factors into investment analysis/decision-making where appropriate.