Perspectives; Thoughts; Comments; Opinions; Discussions

By: JACK MCEVOY, ENERGY & ENVIRONMENT REPORTER December 01, 2022

Read more at https://dailycaller.com/2022/12/01/florida-divests-2-billion-blackrock-activist-investing/

Marco Rubio And Ron DeSantis Campaign In Orlando One Day Before Midterms
(Photo by Octavio Jones/Getty Images)

Florida’s 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 firm’s 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. Florida’s State Treasury will begin to remove roughly $1.43 billion worth of long-term securities from BlackRock’s 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 BlackRock’s social-engineering project isn’t something Florida ever signed up for,” Patronis said, according to the press release. “It’s 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 Fink’s 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 state’s money as he doubts the firm’s dedication to seeking a return on investment.

NEW YORK, NEW YORK – NOVEMBER 30: Andrew Ross Sorkin and Larry Fink on stage at the 2022 New York Times DealBook on November 30, 2022 in New York City. (Photo by Thos Robinson/Getty Images for The New York Times)

We are surprised by the Florida CFO’s 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 BlackRock’s 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 Florida’s citizens,” BlackRock stated. “Fiduciaries should always value performance over politics.”

The Florida CFO’s office did not immediately respond to the DCNF’s request for comment.

"Thank You" for taking the time to comment. I appreciate your time and input.

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tag Cloud

%d bloggers like this: