In an era where major financial institutions oversee trillions in American savings and pensions, asset managers must uphold their fiduciary duty to prioritize maximum returns for retirees above all else — never subordinating it to political or ideological agendas.
This principle is vital for Montanans, whose economy depends on energy production, agriculture, and natural resources. Policies that favor environmental, social, and governance (ESG) criteria — particularly aggressive decarbonization — risk harming these sectors by diverting capital from traditional energy and imposing costs that reduce investment returns.
Leading Wall Street asset managers like State Street continue to emphasize ESG, often at the expense of pure financial performance. Economist Stephen Moore has highlighted that “myriad studies have indicated that ESG policies typically reduce shareholder returns,” potentially costing average families tens of thousands of dollars in retirement savings.
Montana’s interests align closely with President Trump’s pro-growth agenda, which emphasizes energy dominance and deregulation. However, State Street’s leadership has publicly criticized Trump’s pro-worker immigration policies as “anti-growth” and questioned whether the United States is still a great place to invest. Such statements reveal a misalignment with Montana’s interests.
While Montana is far from New York City’s progressive policies, the connection is real. Just last month, New York City Comptroller Brad Lander, a close friend and ally of Mayor-elect Zohran Mamdani, applauded State Street for its “robust approach to climate engagement” as he recommended a complete overhaul of New York City’s pension funds based purely on his decarbonization plans. This has a direct impact on us because State Street is also one of the largest asset managers in Montana in addition to managing the federal Thrift Savings Plan, which serves federal employees — including those in the Trump administration.
Governor Greg Gianforte and President Trump have been unequivocal: “woke” investing through ESG and DEI initiatives undermines prosperity. In January 2023, Governor Gianforte and the Montana Board of Investments committed to excluding ESG considerations from managing over $26 billion in state assets, including public pensions. The Board revoked proxy voting rights for managers pursuing ESG-aligned decisions, focusing solely on pecuniary factors to maximize returns. Governor Gianforte stated, “On my watch, we won’t undermine taxpayers’ returns on investment in favor of the trend of activist, woke capitalism through ESG investing.”
President Trump has similarly issued executive orders targeting proxy advisors and asset managers for promoting politically motivated agendas that harm investors.
State Street’s ongoing ESG commitments and recent public criticisms of President Trump’s pro-worker policies create a clear mismatch with Montana’s fiduciary standards. The Montana Board of Investments should reassess its relationship with State Street and explore alternatives that fully align with the interests of hardworking Montanans.
By prioritizing financial returns over ideological priorities, we can better protect Montana’s economy, jobs, and the retirement security of thousands who depend on these funds. Montanans deserve asset managers focused on prosperity — not politics.
Denley Loge is a Republican state senator from St. Regis. He served as a member of the Senate Business and Labor Committee during the 2025 legislative session.