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United States News Title: Florida Takes $2 Billion Away From BlackRock Due To Firm's Activist Investing Standards Florida Takes $2 Billion Away From BlackRock Due To Firm's Activist Investing Standards JACK MCEVOY ENERGY & ENVIRONMENT REPORTER December 01, 2022 Floridas Chief Financial Officer Jimmy Patronis announced Thursday that the state will begin pulling over $2 billion in assets from large investment manager BlackRock because of the firms environmentally and socially motivated investing standards. Patronis said that BlackRock is choosing to use its money to pursue its ideology rather than secure profits for its clients, according to a press release. Floridas State Treasury will begin to remove roughly $1.43 billion worth of long-term securities from BlackRocks control as well as approximately $600 million worth of short-term investments managed by the firm. (RELATED: EXCLUSIVE: State Treasurer Who Took On BlackRock Plans Crackdown On Woke Investing As Congressman) Using our cash, however, to fund BlackRocks social-engineering project isnt something Florida ever signed up for, Patronis said, according to the press release. Its got nothing to do with maximizing returns and is the opposite of what an asset manager is paid to do. The asset manager aims to push the world towards producing net zero emissions by 2050 and sees climate change as a severe financial risk, according to BlackRock CEO Larry Finks 2022 letter to executives. In August, 19 Republican attorneys general accused BlackRock of violating its duty to make money for its clients by allegedly boycotting fossil fuel companies. Patronis claimed that BlackRock, which manages $8 trillion in assets, has used environmental, social and corporate governance (ESG) investing practices to decide which companies receive investment as well as influence societal outcomes in an undemocratic manner. The Florida CFO stated that he cannot trust BlackRock with the states money as he doubts the firms dedication to seeking a return on investment. We are surprised by the Florida CFOs decision given the strong returns BlackRock has delivered to Florida taxpayers over the last five years, BlackRock said in a statement provided to the Daily Caller News Foundation. Neither the CFO nor his staff have raised any performance concerns. Florida will have divested all its assets from BlackRock by the beginning of 2023 and transfer those assets to other asset managers. Missouri Treasurer Scott Fitzpatrick withdrew $500 million worth of pension funds from BlackRocks management on Oct. 18, arguing that the firm uses its control of pension funds to push a left-wing agenda. We are disturbed by the emerging trend of political initiatives like this that sacrifice access to high-quality investments and thereby jeopardize returns, which will ultimately hurt Floridas citizens, BlackRock stated. Fiduciaries should always value performance over politics. The Florida CFOs office did not immediately respond to the DCNFs request for comment. Post Comment Private Reply Ignore Thread |
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