BlackRock, the world’s largest asset manager, has pushed back against political scrutiny from both Republican and Democratic officials, arguing that pension fund management should not be driven by politics but by fiduciary duty to clients.
In a memo sent to 43 state treasurers, auditors and other officials from both major parties, the firm criticised what it described as increasing political interference. The memo, reviewed by Reuters, underscored BlackRock’s longstanding position but marked a rare direct address to such a broad group of policymakers.
The move follows a July letter signed by 26 Republican officials questioning whether BlackRock prioritises issues such as climate change over financial performance.
In response, 17 Democratic officials sent their own letter earlier this month, calling climate change one of the “unmanaged risks” that investors must pay more attention to.
S. Jane Moffat, BlackRock’s head of state and local government affairs, told the officials that their interventions “continue a concerning trend by both parties of politicizing the management of public pension funds”.
She pointed to BlackRock’s proxy voting policies, noting that clients appreciate its role as an engaged shareholder.
“At the same time, BlackRock is not an activist investor,” she wrote, adding that studies show imposing political constraints on pension funds can reduce returns or cost money.
With US$12.5 trillion (A$19.32 trillion) in assets under management, BlackRock’s influence extends across corporate board elections and votes on environmental and social resolutions.
However, its approach has shifted: after backing many such measures in previous years, BlackRock supported only 4% of environmental and social proposals in 2024, with a similar level expected in 2025.
While BlackRock has yet to publish its latest voting statistics, rival Vanguard recently disclosed that it opposed all 261 environmental and social resolutions presented in the U.S. this year.
The company’s recalibration has eased, but not eliminated, criticism from conservative politicians. At the same time, several Democratic officials have urged BlackRock to adopt a more activist stance and warned they may consider moving funds elsewhere if the firm does not.
