Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business Finance

Arizona, Florida pull state funds from BlackRock investment firm

Following Florida’s lead, Arizona state decides to divest its investments in BlackRock over their ESG policies.

Man in suit representing arizona and florida's move to divert from blackrock

Arizona is still pulling the plug on the funds the state put into BlackRock because of rising concerns over the investment firm’s social, environmental, and governance policies. These policies led other states like Florida to take the same action. Kimberly Yee, AZ Treasurer, claimed in a statement that the Treasury’s IRMC began assessing relations between BlackRock and the trust fund belonging to the state in 2021. 

There were several parts to the review, one of them being the reading of annually received letters written by Larry Fink, CEO of BlackRock. In recent years, Fink is said to have begun dictating businesses located in the US to fit his personal agenda and political beliefs.

To put it simply, BlackRock escalated from a common asset manager to a committee focused on political action. The state’s internal investment team believes this shifted the firm from its duty. 

In efforts to take action on those findings, Arizona began diverting more than $543 million from BlackRock funds in early 2022, reducing their exposure to the company by about 97% towards the end of the year. In her statement, Yee continued to say that Arizona will continue eliminating exposure to BlackRock in an approach that takes a great deal of consideration and a safe investment strategy.

Even though the state is going to keep some of its BlackRock stock for now, Arizona will have “minimal direct exposure” to the company going forward. She concluded her statement by affirming that the state will continue in its action of fighting against companies that are taking risky paths by bringing social issues into the investment space. They hope to be part of the effort to return to traditional practices of money management that put people first. 

BlackRock, to date, is the world’s biggest asset manager, holding around $8 trillion under its belt, and is one of many financial institutions that have led the way for the adaptation of ESG standards. Critics of the “ESG movement” say that its focus on the green energy transition pushes investor returns in the wrong direction, meaning they don’t have their best interests in mind.

Advertisement. Scroll to continue reading.

Macie LaCau is a passionate writer, herbal educator, and dog enthusiast. She spends most of her time overthinking and watering her tiny tomatoes.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Finance

One of the largest players in crypto is making big changes - what does that mean for the rest of the cryptocurrency industry?

Business Finance

Adulting is hard, but retirement looms no matter your age - here are some ways to start squirreling money away so it's less stressful...

Business Finance

Goldman Sachs joins the ranks of the many companies tightening belts in preparation for an economic downturn, but in a big way.

Business Finance

It’s been a tough several months for crypto. We’ve seen quite the stalemate in regards to trading trends, this next to no hope in...


The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.