Last year, BlackRock faced chilling criticism of Chief Executive Officer Larry Fink over his commitment to investing in companies promoting controversial ESG strategies. More than tripled spending on security.
The world’s largest fund manager, which oversees about $10.5 trillion in assets, filed a proxy statement with the Securities and Exchange Commission earlier this month, saying it paid $563,513 for “upgrades to the home security system” at Fink’s mansion last year. He revealed that he spent $.
The company also spent $216,837 on a bodyguard to protect Mr. Fink, the agent said. Quoted by the Financial Times.
BlackRock first created a personal security plan for Fink and President Robert Capito in 2022.
BlackRock has seen a Republican-led state investment fund pull about $13.3 billion in assets from the company in protest at the funder’s focus on environmental, social and governance ESG issues.
The Texas Permanent School Fund finally announced it would be pulling money from BlackRock. It announced $8.5 billion would be cut from the company, the largest cut ever by the Republican-led pension fund.
West Virginia, Florida, Missouri and other Republican-led states have also joined in the pushback against BlackRock over its ESG policies.
BlackRock received a legal warning from the state of Mississippi for “false and misleading statements to Mississippi investors” related to the company’s ESG investment strategy.
Mississippi Secretary of State Michael Watson and the state’s Securities Department issued a “summary cease and desist order” warning the New York-based asset management company of multi-million dollar administrative penalties.
Analysts believe BlackRock is a leader among asset managers in directing investment capital to companies seen as transitioning to a low-carbon society.
The climate fund market grew 25% last year to nearly $210 billion, according to data firm Morningstar.
Four of the five best-selling climate change funds last year were from BlackRock. According to Bloomberg News.
BlackRock’s funds had total net flows of $13.9 billion, according to Morningstar.
