BlackRock to approach gunmakers as clients seek to exclude gun stocks from portfolios

by | 23 Feb, 2018

 

The world’s largest asset manager will approach gun producing firms to “understand their response” to the U.S. school shooting problem in the wake of the attacks in Parkland Florida, at the behest of clients who no longer want their money tied into these businesses. BlackRock owns shares in firearm manufacturers including Sturm, Ruger & Co and American Outdoor Brands, whose shares rallied Thursday due to the prospect of tighter gun regulations, as often happens in the wake of major shootings in the U.S. that become global news stories.

BlackRock spokesman Ed Sweeney said: “We are working with clients who want to exclude from their portfolios weapons manufacturers or other companies that don’t align with their values.” However, BlackRock said it cannot sell shares of a company in an index, given its fiduciary responsibilities, and has not agreed to divest its funds of gun companies yet. Whatever it agrees to do, BlackRock has massive influence over these firms, as it owns 17 per cent of the total shares of Sturm Ruger and 11 of American Outdoor Brands. Any punitive measures from the firm could have a major impact.

Despite the move from BlackRock and polling numbers which indicate support for gun control is at its strongest ever in America, a Republican dominated House and Senate with a pro-NRA President at the helm means new legislation to limit weapons purchases or other measures designed to curtail these horrific events may be extremely difficult or even impossible to pass.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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