CEO Cries: DeSantis Takes On WORLDS Largest Asset Manager Divesting Billions Over Woke Policies

Written By BlabberBuzz | Tuesday, 27 June 2023 04:30 PM
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CEO Cries: DeSantis Takes On WORLDS Largest Asset Manager Divesting Billions Over Woke Policies

BlackRock CEO Larry Fink has admitted that Florida Governor Ron DeSantis' decision to withdraw $2 billion in assets from BlackRock's management last year damaged the firm.

Speaking at the Aspen Ideas Summit, Fink expressed his shame at being part of the conversation. BlackRock, the world's largest asset manager, has been a prominent target of the anti-woke movement due to its commitment to environmental, social, and governance (ESG) policies.

The firm believes that assessing a company's policies on environmental and social issues is part of its fiduciary duty.

However, numerous states disagree and have divested from BlackRock, with some claiming that the firm has "moved from a traditional asset manager to a political action committee."

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Florida's divestment of $2 billion in assets from BlackRock last December was initially dismissed by the firm, which claimed that it would backfire.

"As a fiduciary, everything we do is with the sole goal of driving returns for our clients. We are surprised by the Florida CFO's decision given the strong returns BlackRock has delivered to Florida taxpayers over the last five years," the firm said in a statement.

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"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."

However, Fink's admission of shame at the Aspen Ideas Summit suggests that the divestment did indeed hurt the firm.

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Fink has become a target of criticism over letters he has written emphasizing ESG policies, but he denied wading into politics. "When I write these [investment] letters, it was never meant to be a political statement," he said.

"They were written to identify long-term issues to our long-term investors." Fink's emphasis on ESG policies has been so central to his vision that it made headlines when his 2023 investment letter included zero mentions of ESG.

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