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

Reuters via Yahoo ^ | December 1, 2022 | By Ross Kerber

[Oldeconomybuyer]

(Reuters) - Florida's Chief Financial Officer said on Thursday his department would pull $2 billion worth of its assets managed by BlackRock Inc, 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.

Patronis accused BlackRock of focusing on ESG rather than higher returns for investors.

"Florida's Treasury Division is divesting from BlackRock because they have openly stated they've got other goals than producing returns," Patronis said in the statement provided by his office.

[M Kehoe]

Excellent.

5.56mm

[GreatRoad]

Nice!

[ConservativeWarrior]

Would love to see more of this.

[Drew68]

Governor DeSantis continues to remind us all what real leadership and winning looks like.

[Tell It Right]

The Hill wants you to think that Republican run pension systems are divesting from ESG because they are "promoting a 'woke agenda'". There might be some of that. But mainly it's about returns over agenda (you know investing is about returns by the way).

In Florida's and Louisiana's case it's also about their own economies. If your economy depends on off-shore oil drilling (both states) and refining (Louisiana), the last thing you want to do is finance an agenda that destroys those industries.

[EEGator]

ESG = Corporate Fiduciary Negligence

I would like to know how deep into real estate Vanguard, BlackRock, and larger REITs are…
I would also like to see China’s GDP numbers and Bank of China’s books.

[Vision]

ESG is communism.

[Spok]

Does Reuter’s realize stories like this are campaign ads for DeSantis? Sometimes they just tell the truth. Unintentionally I’m sure.

[butlerweave]

ponzi scheme

[kvanbrunt2]

good job

[Joe Brower]

Florida Freeper

I'm compiling a list of FReepers interested in Florida-related topics.
If you want to be added, please FReepMail me.

[EEGator]

Where’s that picture from?

[plain talk]

“Governor DeSantis continues to remind us all what real leadership and winning looks like.”

Yes I like this guy more and more.

[Ann Archy]

FABULOUS!

[George from New England]

Of course the story is void of the whole truth. Just how much does Florida have in black rock ? Two out of how much IS the real question.

[FtrPilot]

Would love to see more of this.

I will do my part. I am currently in a Blackrock fund. I will call my "Wealth Advisor" and let him know: "Get me out of Blackrock by 31 December or I will close my account."

[momincombatboots]

Desantis… nuking the leftists with action, not just words. Florida calls me more everyday, but I hate flatlands and crowded beaches.
Why can’t Tennessee do this?

[Eleutheria5]

Great development. We have to treasure the good news these days. There’s so little of it.

[MtnClimber]

Thank you Governor DeSantis. I am proud to say that I voted for you!