The Treasurer of Louisiana, John Schroder, has announced that his state will divest all its assets managed by BlackRock because of the money manager’s anti-fossil fuel policies. Once complete, Louisiana will have removed nearly $800 million from BlackRock funds and accounts. Louisiana’s actions join other states, including West Virginia and Texas in an attempt to stop the harm BlackRock and other firms are doing to their vital industries. The Daily Caller’s Sarah Weaver reports:
Louisiana State Treasurer John Schroder announced his state will divest funds from the multi-trillion dollar investment firm, BlackRock, due to environmental, social and governance (ESG) policies some claim boycott the oil, gas and coal industries.
“Your blatantly anti-fossil fuel policies would destroy Louisiana’s economy,” Schroder said in a letter sent Wednesday to BlackRock CEO Larry Fink.
To avoid losing state money “to the detriment of our citizens,” the Louisiana Treasury will gradually divest funds from the financial firm, Schroder wrote. The Louisiana Treasury divested $560 million from BlackRock as of Wednesday.
“Once complete, this divestment will reflect $794 million no longer entangled in BlackRock money market funds, mutual funds or exchange-traded funds (ETFs) holdings,” according to the letter.
The letter took direct aim at ESG, an investing practice that penalizes industries believed to be harming the environment, but ESG’s environmental considerations are often made at the expense of other fiduciary duties. Investment firms that use ESG investing practices often refer to “stakeholder capitalism,” as BlackRock does on its website.
Action Line: You know how Your Survival Guy feels about ESG funds. And now this money grab is falling apart. Money managers’ woke politics have no place in your investments. Avoid money managers who want to use your money in a quest to “save the world” in their own names, and instead look for someone who puts your interests first with a fiduciary duty to you. If you need help, let’s talk. If you want to learn more, click here to subscribe to my free monthly Survive & Thrive letter.
