Today, Texas Permanent School Fund leadership delivered an official notice to global asset manager BlackRock terminating its financial management of approximately $8.5 billion in Texas’ assets.
My statement: pic.twitter.com/wf79a1jZlf
— Aaron Kinsey (@AaronKinseyTX) March 19, 2024
Texas just pulled a whopping $9 billion in assets from global asset manager BlackRock, and here’s why it matters.
It all started when the Texas Permanent School Fund (PSF) decided to terminate its $8.5 billion investment with BlackRock Inc. Why? Well, one official pointed to BlackRock’s support of environmental, social, and governance (ESG) proposals, which didn’t sit well with Texas lawmakers.
State Board of Education Chairman Aaron Kinsey didn’t mince words, stating that the PSF’s relationship with BlackRock wasn’t in compliance with Texas law. In fact, legislation enacted in 2021 prohibits state investment in companies like BlackRock that boycott energy companies, a move aimed at safeguarding Texas schools and oil and gas royalties managed by the Texas General Land Office.
BlackRock, with its trillions of dollars in assets, faced divestments by other GOP-led states over its perceived “woke” agenda. While the company has dialed back its support for ESG proposals, critics remain wary.
In response, BlackRock emphasized its contributions to Texas’ economy, including investments in energy companies and infrastructure. However, Texas remained firm in its decision, sending a letter to BlackRock outlining the termination of the contract, effective April 30.
This move by Texas sends a clear message: principles over profit. It’s a reminder that even in the world of finance, values matter. So, are other red states listening? Only time will tell.
Source:
https://www.dailywire.com/news/texas-schools-fund-moves-to-pull-8-5-billion-contract-with-blackrock