BlackRock: Investment giant threatens to pull funds from gunmakers after Florida high school shooting
World's largest investment management firm says the attack has 'driven home the terrible toll from gun violence in America'
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Your support makes all the difference.BlackRock, the world’s largest money manager, will offer its clients the ability to opt out of investing in gun manufacturers in the wake of the deadly Florida high school shooting.
The firm, which manages close to $6 trillion (£4.3 trillion) in assets, said on Friday the attack had “driven home the terrible toll from gun violence in America”.
"We believe that this event requires response and action from a wide range of entities across both the public and private sectors,” it added in a statement.
“It has put a spotlight on the role of companies that manufacture and distribute civilian firearms.”
The fund manager has posed a series of safety-related questions to firearms producers and threatened to vote against directors at firms it holds a major stake in to enforce change if needed.
BlackRock said its clients will also be offered the opportunity to avoid investing in gun makers.
“Our responsibility to engage and vote is more important than ever,” said chief executive Larry Fink in a letter to companies in which BlackRock invests.
“To prosper over time, companies must benefit all of their stakeholders, including shareholders, employees, customers and the communities in which they operate.”
The US financial sector has been under pressure to examine its dealings with the firearms industry after the Valentine’s Day shooting at Marjory Stoneman Douglas High School in Parkland, which left 17 people dead.
The suspected gunman, 19-year-old Nikolas Cruz, has been charged with carrying out the attack – one of the deadliest in US history.
Despite BlackRock’s overtures, it has stopped short of saying it will commit to an outright ban on investment in gun manufacturers.
It is the largest shareholder in publicly traded firearms companies American Outdoor Brands and Sturm Ruger, and holds a sizeable stake in a third, Vista Outdoor.
However, it says this investment represents just 0.01 per cent of its total assets.
BlackRock's move came days after US retailer Dick’s Sporting Goods, of which it is the largest single investor, announced it would stop selling assault rifles and end gun sales to people under the age of 21.
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