Wednesday, February 1, 2023

Florida withdraws $2,000 million in assets from BlackRock for ideological reasons

Miami, Dec 2 The state of Florida (USA) announced it would withdraw $2,000 million from powerful asset management firm BlackRock due to discrepancies with its environmental and social policies, a decision the company said in response said Floridians would be losers. .

Florida, whose governor, Ron DeSantis, has become a relevant figure within the Republican Party, with this measure against BlackRock follows in the footsteps of Louisiana and Missouri, whose governments are also conservative, returning millions of dollars from BlackRock in October. announced to take Rejection of environmental, social and corporate (ESG) policies.

Florida Chief Financial Officer Jimmy Petronis criticized BlackRock CEO Larry Fink for announcing that the divestment was the largest of its kind by the state.

“If Larry or his friends on Wall Street want to change the world, run for office. Start a non-profit organization. Donate to causes you care about,” he said in a statement released Thursday. “

According to Petronis’ announcement, the State Treasury, under his supervision, will request that $1.43 billion of long-term securities under management at BlackRock be immediately frozen, so that funds can be allocated to other managers until early 2023.

Similarly, it takes on the role of manager of short-term investments of approximately $600 million from the largest firm of its kind in the US.

“The Florida Division of the Treasury is disposing of BlackRock because they have openly stated that they have objectives other than generating returns,” Petronis said in its statement.

He pointed to a letter to CEOs written by Fink earlier this year, in which he, the head of the risk management firm, argues that “capitalism has the power to shape society.”

“I think it is undemocratic for major asset managers to use their power to influence social outcomes,” Petronis said.

“Using our cash to finance BlackRock’s social engineering project is not something Florida signed up for. It has nothing to do with maximizing returns and is the opposite of what a The asset manager gets paid,” he added.

BlackRock, which runs the $8 trillion fund, issued a statement regretting the decision, which puts politics before investors’ interests, specifically that “Over the past five years, BlackRock has delivered strong returns to Florida taxpayers, reported by USA Today on Friday.

“We are concerned about an emerging trend of policy initiatives such as sacrificing access to high-quality investments and therefore jeopardizing returns, which will ultimately harm the citizens of Florida,” he added.

Nation World News Desk
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