CHERYL: THE SUNSHINE STATE
TAKING AIM AT BLACK ROCK,
YANKING TO BILLION DOLLARS FROM
WHAT FLORIDA APP CFO CALLS
INVESTMENT FIRM’S SOCIAL
ENGINEERING PROJECT.
FOX BUSINESS APP GERRI WILLIS
IS HERE WITH THE LATEST, THIS
IS A GREAT STORY.
>> Reporter: IT IS AMAZING AND
IF YOU ’RE WORRIED ABOUT YOUR
RETIREMENT, LISTEN UP, THE BACK
LASH TO WOKE INVESTING IS
BUILDING, FLORIDA AND
ANNOUNCING PLANS TO DIVEST
$2 MILLION IN FUNDS OVERSEEN BY
FINANCIAL GIANT BLACK ROCK OVER
ENVIRONMENT, SOCIAL AND
GOVERNANCE, WHAT THEY CALL
THOSE ESG POLICIES, THE BIGGEST
SUCH DIVERSE TO BUYER STATE TO
DATE, FLORIDA IS THE LATEST
STATE TO MAKE THE DECISION TO
BOOK BLACK ROCK PUTTING THE
TOTAL INVESTMENTS AT OVER $4
BILLION BEING YANKED, FLORIDA
CFO JIMBO PETRONAS SAYING HE
HAS LOST CONFIDENCE IN BLACK
ROCK’S ABILITY TO GENERATE
RETURNS FOR HIS STATE.
>> I NEED A BUSINESS PARTNER
WHO IS LOOKING OUT FOR THE
BOTTOM LINE OF THE CITIZENS OF
THE STATE FLORIDA, SOMEONE
WANTS TO INFLUENCE POLICY THEY
SHOULD RUN FOR OFFICE, GO GIVE
MONEY, THERE MONEY TO THOSE
CHARITIES TO INFLUENCE IT BUT
NOT USE THE TAXPAYERS OF
FLORIDA’S MONEY TO DO THIS BUT
I NEED A GOOD RETURN FOR THE
NEXT GENERATION OF FLORIDIANS.
>> THAT MONEY A DROP IN THE
BUCKET TO THE FIRM WHICH
MANAGES $8 TRILLION.
BLACK ROCK SAYS IT’S RETURNS
HAVE BEEN STRONG, FIDUCIARYS
SHOULD ALWAYS VALUE PERFORMANCE
OVER POLITICS.
TYPICALLY IT HAS BEEN
INTERPRETED TO MEAN, FIDUCIARY
ROLE, TO MEAN MONEY MANAGERS
CHASE THE BEST PERFORMING
ASSETS REGARDLESS OF SECTOR BUT
ESG PUT SOCIAL POLICIES FIRST,
THAT GETS TO THE HEART OF THE
DEBATE.
IS ESG A GOOD INVESTMENT?
IF YOU LOOK AT THE NUMBERS IT
MIGHT NOT BE, USING AN ASU
STRATEGY, OIL AND GAS FOR
EXAMPLE DEEMPHASIZED OR AVOIDED
BECAUSE OF CLIMATE CONCERNS.
HAVE YOU DONE THAT THIS YEAR?
YOU’VE MISSED OUT ON THE ONLY
POSITIVELY PERFORMING SECTOR IN
THE S&P 500 WHICH FELL 14%, THE
ENERGY SECTOR WAS UP 63%.
THE BIDEN ADMINISTRATION
PUSHING ESG JUST LAST WEEK, THE
LABOR DEPARTMENT FINALIZED A
RULE THAT EMPOWERS RETIREMENT
PLAN SPONSORS TO INVEST BASED
ON THOSE PRINCIPLES, YOU JUST
CAN’T AVOID ESG.
EXECUTIVE PAY NOW IS INFLUENCED
BY ESG POLICIES, A NEW SURVEY
FROM THE CONFERENCE BOARD
SHOWING 60% OF INVESTING
PROFESSIONALS EXPECT ESG TO
BECOME THE STANDARD.
CHERYL: I LOVE BLACK ROCK’S
RESPONSE, QUALITY INVESTMENTS,
THE RESPONSE DIDN’T SAY GREAT
INVESTMENTS, STRONG RETURN
INVESTMENTS, QUALITY
INVESTMENTS.
LARRY FINK HAS BEEN VOCAL,
FINE, OTHER STATES HAVE DONE
THIS.
OTHER STATES SAID WERE NOT
GOING TO INVEST THIS WAY.
>> IT IS A TREND THAT IS
GAINING A LOT OF MOMENTUM.
CHERYL: LOOK AT OUR PORTFOLIOS THIS YEAR.
THIS YEAR.
WE NEED HELP MAKING MORE MONEY.
LET’S GET REACTION FROM NATION
OF VICTIMS AUTHOR VIVEK
RAMASHWAMI.
WHAT DO YOU MAKE OF THIS
CONTROVERSY?
>> A STEP IN THE RIGHT
DIRECTION FOR FLORIDA.
STATES, PEOPLE FORGET ARE NOT
JUST REGULATORS OR
POLICYMAKERS, THEY ARE ALSO
MARKET ACTORS INVESTING THE
MONEY OF THEIR CITIZENS AND
CONSTITUENTS AND THE ECONOMY
AND INVESTING BIO FIRMS THAT
HISTORICALLY USED THEIR CAPITAL
TO ADVANCE 1-SIDED POLITICAL
AGENDAS.
AS YOU POINTED OUT THIS IS A
DROP IN THE BUCKET AND THE REAL
PROBLEM ISN’T NECESSARILY JUST
BLACK ROCK USING THE FUNDS TO
INVEST IN CERTAIN KINDS OF
COMPANIES BUT NOT OTHERS,
THAT’S A TINY PORTION OF THE
TOTAL PROBLEM CHARACTERIZED BY
ESG FUNDS.
THE REAL PROBLEM IS USING ALL
OF THE OTHER EQUITY INVESTMENTS
THEY MAKE ABOUT USING THEIR
VOTING POWER, SHAREHOLDER
VOTES, PROXY VOTES, THEIR VOICE
TO SPEAK ON BEHALF OF EVERYDAY
CITIZENS TO ADVANCE, POLITICIZE
POLICIES IN THE BOARDROOMS THAT
MOST OF THOSE CITIZENS DISAGREE
WITH.
I DON’T THINK THIS MOVE WILL DO
MUCH TO MOVE THE NEEDLE ON THAT
BECAUSE THIS -- THE TREASURY
DEPARTMENT IS MOSTLY FIXED
INCOME SECURITIES, CASH.
WHAT WE NEED IS LARGE EQUITY
INVESTMENTS MOVING AWAY FROM
BLACK ROCK AND OTHER POLITICIZED FIRMS TOWARD FIRMS
POLITICIZED FIRMS TOWARD FIRMS
THAT ARE ABLE TO BRING UP PRO
FIDUCIARY PRO EXCELLENCE --
CHERYL: 794 MILLION, 42 BILLION
TO WE TALKED ABOUT IT, SOUTH
CAROLINA 200 MILLION, WE GOT
THAT GRAPHIC TO SHOW YOU AND
FLORIDA SAYS NEXT YEAR THEY ARE
GOING TO LOOK AT OTHER MONEY
MANAGERS.
TO BE CLEAR, ESG IS NOT GOING
AWAY TO YOUR POINT BUT BACK TO
THE WOKE INVESTING AND I LOOK
AT DISNEY AND WHAT HAPPENED TO
DISNEY’S STOCK PRICE, WHAT
HAPPENED TO DISNEY IN FLORIDA
AND NOW WITH BOB IGER COMING
BACK AND TAKING THE REINS
SAYING HE WANTS TO TAKE
POLITICS OUT OF THE BUSINESS,
IS THERE A PUSHBACK DO YOU
THINK?
>> OF COURSE THERE IS A
PUSHBACK.
IT IS BEEN MY FOCUS THE PAST
COUPLE YEARS.
THE CULTURAL TIDES ARE CHANGING
IN CORPORATE AMERICA, TAKE A
LOOK AT NETFLIX COMING NOT ONLY
TO DAVE CHAPELLE’S DEFENSE BUT
THE DEFENSE OF EXCELLENCE IN
ARTISTIC CREATION.
I SENT A LETTER ON BEHALF OF
STRIVE TO THE BOARD OF
DIRECTORS OF DISNEY ASKING
ABOUT THEIR OVERSIGHT OF BOB
JEFFORDS’S DECISIONS, THERE IS
THE BEGINNING OF A CULTURAL
TIDE MOVING IN THAT DIRECTION
AND A BIG PART OF THAT WAS SOME
OF THE ECONOMIC HARDSHIP
INCLUDING BORNE BY COMPANIES
LIKE NETFLIX THAT REPORTED POOR
CORLEY RESULTS BEFORE THEY
CHANGED THEIR CULTURAL TUNE.
I’M OPTIMISTIC.
IT WILL TAKE MORE MARKET
ACTORS, MORE EXECUTIVES, MORE
BOARD MEMBERS TO ACTUALLY
EXHIBIT COURAGE.
WHAT WE HAVE SEEN IN THE LAST
FEW YEARS IS FEAR HAS BEEN
INFECTIOUS IN CORPORATE
AMERICA, FEAR HAS BEEN
CONTAGIOUS WHICH I SAY COURAGE
CAN BE CONTAGIOUS TOO AND
THERE’S AN ECONOMIC OPPORTUNITY
TO CAPTURE FOR COMPANIES THAT
DO BEHAVE.
CHERYL: TALKING ABOUT APPLE AND
TIM COOK BUT FINAL THOUGHT ON
THIS TOPIC IS COMPANIES NEED TO
BE FOCUSING ON BUSINESS, NOT
POLITICS.
TIM COOK REFUSED TO COMMENT ON
THE PROTESTS IN CHINA, HE’S
TAKEN A LOT OF HEAT OVER THE
COMPANY LIMITING THE REACH OF
THAT AIRDROP FEATURE FOR
PROTESTERS IN CHINA.
WATCH HILLARY VAUGHAN GO AFTER
HIM.
>> DO YOU SUPPORT THE CHINESE
PEOPLE’S RIGHT TO PROTEST?
DO YOU HAVE ANY REACTION TO THE
FACTORY WORKERS THAT WERE BEATEN AND DETAINED FOR
BEATEN AND DETAINED FOR
PROTESTING COVID LOCKDOWNS?
DO YOU REGRET RESTRICTING
AIRDROP ACCESS PROTESTERS USED TO EVADE SURVEILLANCE FROM THE
TO EVADE SURVEILLANCE FROM THE
CHINESE GOVERNMENT?
DO YOU THINK IT IS PROBLEMATIC
TO DO BUSINESS WITH THE
COMMUNIST CHINESE PARTY WHEN
THEY SUPPRESS HUMAN RIGHTS?
CHERYL: WHAT DO YOU THINK?
>> I SAID BEFORE AND WILL SAY
AGAIN, TIM COOK IS A CIRCUS
MONKEY THAT JUMPS TO THE TUNE
OF ITS MASTER, THE CCP SITTING
IN BEIJING AND HERE IS WHY.
APPLE’S SUPPLY CHAIN FOR
PRODUCING ITS PRODUCTS DEPENDS
ON CHINA.
THEY ARE ECONOMICALLY HEADED TO
CHINA AND IF THEY CRITICIZE THE
CCP THEY WILL LOSE THEIR
ABILITY TO BE A LEADING
BUSINESS.
COMPANIES SHOULD FOCUS ON THEIR
PRODUCTS, NOT POLITICS.
I DON’T WANT TO BE EQUIPPED
HYPOCRITICAL, THE PROBLEM IS
APPLE’S HYPOCRISY IN THE UNITED
STATES THAT WILL PREACH AND WAX
ELOQUENT ABOUT SOCIAL
INJUSTICE, COMMITTED ONE
HUNDRED MILLION DOLLARS TO
RACIAL EQUITY AND FIGHTING
OTHER FORMS OF SOCIAL INJUSTICE
IN THE UNITED STATES, CALLING
ON THE COMPANY TO DO A RACIAL
EQUITY AUDIT WITHOUT SAYING
ANYTHING ABOUT THE TRUE HUMAN
RIGHTS ATROCITIES IN CHINA AND
ELSEWHERE AND HOW THEIR OWN
PRODUCTS AND TECHNOLOGY IS USED
TO ADVANCE THAT OBJECTIVE FOR
THE CCP AND CONSUMERS IN THE
UNITED STATES DESERVE TO SEE
THROUGH THAT CHARADE BUT THIS
IS A GROWING JOB FOR US
POLICYMAKERS TO UNDERSTAND THIS
IS NOT JUST APPLE, THE LARGEST
COMPANY IN THE WORLD, THIS IS
MANY COMPANIES IN THE US THAT
HAVE BEEN DEPUTIZED AS TROJAN
HORSES TO ADVANCE THE CCP’S
GEOPOLITICAL AGENDA AND CREATE
A FALSE MORAL EQUIVALENCE
BETWEEN THE US AND CHINA BY
REMOTELY CRITICIZING INJUSTICE
IN THE US WHILE STAYING SILENT
ABOUT IT ABROAD OVER THERE AND
I VIEW THAT AS A BIG NATIONAL
SECURITY THREAT THAT WE NEED TO
WAKE UP TO IN THIS COUNTRY.