Florida pulls $2 bln from BlackRock in largest anti-ESG divestment

[groundloop]

Source: Reuters

Florida's Chief Financial Officer said on Thursday his department would pull $2 billion worth of its assets managed by BlackRock Inc (BLK.N), the biggest such divestment by a state opposed to the asset manager's environmental, social and corporate governance (ESG) policies.

While the move will hardly dent BlackRock's $8 trillion in assets, it underscores how the backlash among many Republican politicians, such as those in Florida, against ESG investing, which they see as promoting a "woke agenda" is gathering steam.

Republicans are set to assume control of the House of Representatives in January. This will allow them to hold hearings on ESG and grill the chief executives of BlackRock and other major assets managers about their ESG policies, and also pressure regulators to scrutinize them.

In a statement, Florida CFO Jimmy Patronis said the state's Treasury, which he oversees, would remove BlackRock as manager of about $600 million of short-term investments and have its custodian freeze $1.43 billion of long-term securities now with BlackRock, with an eye on reallocating the money to other money managers by the start of 2023.

Read more: https://www.reuters.com/business/finance/florida-pulls-2-bln-blackrock-largest-anti-esg-divestment-2022-12-01/

[Old Crank]

1. Isn't that exactly

what the GOP complain about when the lefties stop investing in coal and oil???

[Bernardo de La Paz]

2. ESG is the free market in action. But Republicons are all about government intrusion

They swear up and down that they are all for small government and freedom from the government, but the only small government they endorse avoids taxpaid healing.

Their actions are anti-freedom. Only Republicon states have Election Police Forces. Now, with the ESG. And foremost, intrusion into women's bodies.

ESG (Environment, Social, corporate Governance) is the free market. If a majority of the investing public (I think so) through pension plans and reinsurance and index funds and mutual funds wants "woke" ESG, the free market can and does provide it.

Butt out, Big Brother Republicons.

[Marthe48]

3. Cutting off their noses

I'd bet that a company like Blackrock would be better at handling OPM than any sleazy r.

[BootinUp]

4. This is the opposite of "smart money"

[Mawspam2]

5. Florida will instead invest in row boats and buggy whips!

That'll show those 'woke' retirees just how much we care about them.

[BlueWaveNeverEnd]

21. ha ha... and black smithing franchises

[jaxexpat]

6. DeSantis is polishing up his bona fides in preparation for the 4th Reich.

[womanofthehills]

7. Interesting that Black Rock was invested in FTX

BlackRock Lost $24M In FTX Collapse plus I.7 trillion in six months


BlackRock‘s CEO Larry Fink revealed that the asset manager had invested $24 million in FTX, which it considers lost.

Fink added that the investment was small and not part of Blackrock’s core business. Fink confirmed the loss on Nov. 30 during an interview with New York Times columnist. https://asiatokenfund.com/altcoins/blackrock-lost-24m-in-ftx-collapse/


BlackRock Inc. is used to breaking records. The world’s largest asset manager was the first firm to break through $10 trillion of assets under management. But the bigger they are the harder they fall. And this year BlackRock chalked up another record: the largest amount of money lost by a single firm over a six-month period. In the first half of this year, it lost $1.7 trillion of clients’ money.

https://www.bloomberg.com/opinion/articles/2022-07-20/how-blackrock-lost-1-7-trillion-in-six-months

[bronxiteforever]

9. Interesting. Where should Florida invest instead?

You seem to be up on these things. What is your take on this type of investment.

[oldsoftie]

12. Didnt the 1.7 trillion "loss" come from a drop in the market?

And if thats the case, its only a loss if the owners sold at the bottom.
I "lost" a ton of money before June. Then I "gained" most of it back. Because I stayed invested.

[sybylla]

20. WTF?

Since when is crypto green or environmental?

[womanofthehills]

23. Supposedly, ETH is now green - at least that what the internet says

ETH slashed carbon emissions 99.9%

[SouthernDem4ever]

26. god forbid that we try and keep the air breathable

Desantanist is just an asshole.

[Mr. Sparkle]

8. I thought they hated cancel culture.

[Lonestarblue]

10. Florida citizens whose pension funds are probably a large part of this money should do some

quick research on how Republicans in Kentucky switched pension investments to Republican schemers and lost many millions of dollars. The former Republican governor lost his re-election because he tried to severely cut public employees’ pensions to make up for the loss. That backfired as the state’s teachers, many of them already retired and depending on their pensions, staged large protests.

The upshot is that Republican politicians aren’t competent at much of anything and should never be allowed to make decisions about anything important.

[SouthernDem4ever]

27. +1

[keithbvadu2]

11. Golly! Maybe they'll give it to Jared to manage?

Golly! Maybe they'll give it to Jared to manage?

[oldsoftie]

13. Employees should have a say where their money is invested.

If you DONT want exposure to "ESG" type funds, then pick a different investment for your share of investment money. But the State part of their retirement should be invested in the best interest of the employees. According to who? Well, that I don't know

[Igel]

22. According to who?

According to the law, to secure the maximum benefit, construed for decades as financial.

You're going to retire, you want money to buy food and pay for housing. Maybe help the offspring if you have any.

Increasingly, it's construed as "to support ESG--what matters is not just paying for food and housing and pursuing sound environmental, social, and governmental policies." That allows part of retirement-space to include, "I cannot afford food, but at least I know I supported sound governmental policies." Perhaps not a large part of r-space, but it's certainly non-zero.

I find that the folk monitoring my investment do that, I'm pulling my funds. It's a free market. I worry for my kid and his possible offspring, but at the same time I don't feel like living under an underpass for social and governmental policies. I'm both part of society and one of government's bosses.

[womanofthehills]

24. How does Blackrock become a ESG fund when its among the top holders of Chevon,Exxon Mobil and Conoco

Just asking?

[oldsoftie]

25. I don't know who does the scoring or HOW these things are scored.

More likely just FL trying to do something for looks. Just like bussing migrants to wherever. Does NOTHING to alleviate the problem, but gives Ron the optics of sticking it to the "NE libs"
Wonder where did they move that money to AFTER leaving Blackrock

[keopeli]

14. This type of move will be followed by a major loss of funds in a couple of years.

The new manager will be a smaller business, exclusively repuglican, and likely corrupt. Some people will make a boatload of money from the taxpayers in FL. The taxpayers will end up losing their shirts.

[Deep State Witch]

15. I Invested in this

Simply because of the ESGs. I told my financial advisor that I specifically wanted ESG.

[ProfessorGAC]

16. Really Foolish

If Blackrock thought ESG principles weren't a good long term aspect to investment they wouldn't do it.
This isn't about being "woke". It's about maximizing return on investment.

[DENVERPOPS]

17. I believe

Colorado's PERA,(Public Employee Retirement Fund) is a disaster and grossly underfunded. And has been for years and years, and only getting worse. Politicians in Colorado keep playing kick the can down the road, not necessarily doing anything about it,...If true, WHY

I would love it, if someone out there knows about this, could comment and explain about PERA and how, if true, how it got this way?

[OAITW r.2.0]

18. Florida will probably use the money to cover insurance premiums due to climate change.

[discocrisco01]

19. FL Retirement System

My understanding that Florida has a 401k type of retirement system,