DeSantis to cut off FRS investments to 'woke' companies
Gov.
DeSantis, who has emerged as a leading warrior against what he and his supporters call a woke agenda and "ideological corporate power," wants to prohibit the state from considering what are known as environmental, social governance (ESG) standards when investing state money in companies.
ESG is a 20-year old movement to encourage corporate responsibility by encouraging investment in companies that have policies addressing issues like climate change, human rights and racial injustice.
FRS is the pension fund for more than a million public sector workers, retirees and their surviving spouses. More than 90% of its revenue (
The fund paid out
DeSantis, who is up for reelection in November but also widely considered as a Republican presidential frontrunner for 2024, told conservative radio host
"We're a big pension system," DeSantis told Beck. "And some of these businesses are going to have to choose between going down the ESG rabbit hole or being able to be invested with the
According to the global management consulting firm
After an
A draft of the DeSantis proposal, which comes after months of threats against "woke CEOs," opines that "the
In other words, investors can consider only a company's risk and the return on investment.
"Our teachers, law enforcement officers and state employees, who have worked their entire lives in service to our state, shouldn't have their pensions squandered because a business doesn't align with some woke rating agency's political beliefs," said Patronis.
FRS is the gold standard under assault,
"It's an age-old tactic for politicians to create a problem and solve it to distract from real ones like a property insurance crisis," said Hattersley, who charges Patronis was a "CFO who went AWOL" during the special legislative session on property insurance.
Analysts say FRS is the gold standard for state pension systems, routinely exceeding benchmarks for 20, 25, 30-year performance periods with annualized returns of 7.4%, 8.2%, and 9.0%.
In the COVID-ravaged economy of 2020 the fund return on investment was 28.7%. Last year it earned a net return of 29.4%.
The FRS portfolio includes investments in 10,174 companies worldwide and managers have averaged an annual 10.3% return-on-investment since 2008.
The stellar performance is because "we allow the experts to do their jobs without political interference," said Sen.
Hattersley dismisses the proposal as political theater and "an absolute betrayal of the
Hattersley says the change could open the door to the governor and CFO blocking investments in a company that offers diversity training.
"Government policing the internal ethics of a company is beyond unconservative or whatever the right word would be," said the 44-year-old Hattersley, whose father was a registered Republican voter.
"Injecting the governor's political agenda into affecting the lives, pensions, of a million Floridians is more then wrong," said Hattersley. "It's irresponsible," and he added a possible violation of the trustees' fiduciary responsibilities to workers and retirees.
The digital news website reported that congressional
Push is the latest attack
line for the governor
The DeSantis anti-woke investment proposal comes on the heels of a contentious year in the
Lawmakers at the governor's urging approved a Stop the Wrongs to Our Kids and Employees (WOKE) Act, which prohibits the teaching of Critical Race Theory in public schools and blocks businesses from using practices or training that makes employees feel guilty because of their race, sex, or national origin.
Chief U.S. District Judge
When
"What I've said is the
The SBA trustees will consider the anti-woke investment proposal Tuesday at the state capital.
Florida ‘insurer of last resort’ doubles policy count in one year
Funding retirement — and good causes
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News