Florida pulls $2 Billion in Funds from ESG

What is happening? If I take a cynical approach to this, Ron De Santis is running for President. So, Florida Chief Financial Officer announced that the state will be pulling $2 billion in assets that are currently under management by BlackRock. Why? The investment firm support for environmental, social and governance investing. Let’s double around to another item this week that shows that ESG is the largest share of consumers in the market, is demanded by the global market, and by 2025 will account for the most funds in Europe. The response: “Fiduciaries should always value performance over politics.” The firm gave Florida strong returns.

Why is this important? This is a global economy. Foregoing strong returns to make a political statement appears to be against one’s economic interest.

WSJ | Florida To Pull $2 Billion Out of BlackRock, Citing Its ESG Investing