United States Government & Pension Funds Withdraw from World 2nd Largest Asset Manager BlackRock with $7.9 Trillion AUM, BlackRock & Chairman Larry Fink Under Scrutiny for ESG Practices
17th December 2022 | Hong Kong
United States government & pension funds (West Virginia, Texas, Louisiana, Missouri & Florida) have began billions of dollars in withdrawal from the world 2nd largest asset manager BlackRock with $7.9 trillion AUM (Assets under Management), with BlackRock & Chairman Larry Fink under scrutiny for ESG practices (Environmental, Social & Governance). In early December 2022, Florida state ($60 billion assets) announced to withdraw $2.03 billion from BlackRock. Florida CFO Jimmy Patronis: “As Florida’s Chief Financial Officer, it’s my responsibility to get the best returns possible for taxpayers. The more effective we are in investing dollars to generate a return, the more effective we’ll be in funding priorities like schools, hospitals and roads. As major banking institutions and economists predict a recession in the coming year, and as the Fed increases interest rates to combat the inflation crisis, I need partners within the financial services industry who are as committed to the bottom line as we are – and I don’t trust BlackRock’s ability to deliver. See full statement below.
“ United States Government & Pension Funds Withdraw from World 2nd Largest Asset Manager BlackRock with $7.9 Trillion AUM, BlackRock & Chairman Larry Fink Under Scrutiny for ESG Practices “
1st Dec 2022 – Today, Florida Chief Financial Officer (CFO) Jimmy Patronis announced that the Florida Treasury will begin divesting $2 billion worth of assets currently under management by BlackRock. The State Treasury will immediately have Florida’s custody bank freeze approximately $1.43 billion worth of long-term securities and remove them as the manager of approximately $600 million worth of short-term overnight investments. These taxpayer funds are invested by asset managers as part of Florida’s Treasury Investment Pool. By the beginning of 2023, the State Treasury will have divested from BlackRock’s management of all short and long-term investments and relocated investment responsibilities to other fund management entities.
Earlier in December 2022 – Vanguard, the world’s largest asset manager with $8.1 trillion AUM (Q3 2022, Assets under Management), has announced the decision to quit the Net Zero Asset Managers Initiative (NZAMI), which requires asset managers to reach net zero emissions by 2050 for all AUM. Vanguard: “We have decided to withdraw from NZAM so that we can provide the clarity our investors desire about the role of index funds … … And about how we think about material risks, including climate-related risks – and to make clear that Vanguard speaks independently on matters of importance to our investors.” In November 2022, the Net Zero Asset Managers Initiative had 291 signatories with a total of $66 trillion AUM.
Florida CFO Jimmy Patronis with $60 Billion Assets on BlackRock, Larry Fink & ESG
Florida CFO Jimmy Patronis: “As Florida’s Chief Financial Officer, it’s my responsibility to get the best returns possible for taxpayers. The more effective we are in investing dollars to generate a return, the more effective we’ll be in funding priorities like schools, hospitals and roads. As major banking institutions and economists predict a recession in the coming year, and as the Fed increases interest rates to combat the inflation crisis, I need partners within the financial services industry who are as committed to the bottom line as we are – and I don’t trust BlackRock’s ability to deliver.
BlackRock CEO Larry Fink is on a campaign to change the world. In an open letter to CEOs, he’s championed ‘stakeholder capitalism’ and believes that ‘capitalism has the power to shape society.’ To meet this end, the asset management company has leaned heavily into Environmental, Social, and Governance standards – known as ESG – to help police who should, and who should not gain access to capital.
Whether stakeholder capitalism, or ESG standards, are being pushed by BlackRock for ideological reasons, or to develop social credit ratings, the effect is to avoid dealing with the messiness of democracy. I think it’s undemocratic of major asset managers to use their power to influence societal outcomes. If Larry, or his friends on Wall Street, want to change the world – run for office. Start a non-profit. Donate to the causes you care about.
Using our cash, however, to fund BlackRock’s social-engineering project isn’t something Florida ever signed up for. It’s got nothing to do with maximizing returns and is the opposite of what an asset manager is paid to do. Florida’s Treasury Division is divesting from BlackRock because they have openly stated they’ve got other goals than producing returns. As Larry Fink stated to CEOs ‘Access to capital is not a right. It is a privilege.’ As Florida’s CFO I agree wholeheartedly, so we’ll be taking Larry up on his offer. There’s no lack of companies who will invest on our behalf, so the Florida Treasury will be taking its business elsewhere.
1st Dec 2022 – Today, Florida Chief Financial Officer (CFO) Jimmy Patronis announced that the Florida Treasury will begin divesting $2 billion worth of assets currently under management by BlackRock. The State Treasury will immediately have Florida’s custody bank freeze approximately $1.43 billion worth of long-term securities and remove them as the manager of approximately $600 million worth of short-term overnight investments. These taxpayer funds are invested by asset managers as part of Florida’s Treasury Investment Pool. By the beginning of 2023, the State Treasury will have divested from BlackRock’s management of all short and long-term investments and relocated investment responsibilities to other fund management entities.
BlackRock managed $1.43 billion of Florida’s Long Duration Portfolio, which manages investments such as corporate obligations, asset backed securities, and municipal bonds. Unlike the externally managed portfolios which are managed by 12 different asset managers, BlackRock exclusively managed Treasury’s $600 million Short Term Investment Fund (STIF), which is a cash sweep vehicle Treasury uses to assist long duration, intermediate duration, and short duration managers in managing their cash on a daily basis. This fund uses any excess cash that a portfolio manager may have at the end of the day and invests that cash into very short, very liquid type securities.
The Florida Department of Financial Services manages approximately $60 billion in taxpayer money.
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- June 2024 - Hong Kong
- June 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
