But other fund managers overseeing Florida’s money, like Fidelity Investments, Amundi SA and Insight Investment, are—like BlackRock—signatories of the United Nations Principles for Responsible Investing, which means they incorporate ESG principles in investment decision making.
Florida’s gambit might also trigger questions over fiduciary duty. Even the calculations by Patronis’s own team show that funds managed by BlackRock have had middle of the pack returns, out of the dozen firms Florida’s Treasury employs to manage its money. BlackRock ranked seventh out of 12 fund managers in one- and three-year risk-adjusted returns, according to data from the CFO office.
“There are other players that we can pivot to that are having better performance,” Patronis said, without naming specific firms.
Florida’s retirement plan has also invested in a fund managed by HSBC Holdings Plc, which on Wednesday said it will no longer finance new oil and gas fields.
A career politician, Patronis took over the state’s finances in 2017. He has since rose to the spotlight by carrying out some of the most controversial moves under DeSantis’s tenure, not only against BlackRock but also helping with the state’s push to strip Walt Disney Co. of some privileges in retaliation for then CEO Bob Chapek balking at a law restricting sexual orientation discussion in schools.
—With assistance from Saijel Kishan.
This article was provided by Bloomberg News.