BlackRock, the world's largest investment manager, has recently created gun-free funds to appeal and offer an option of ethical investment for its many clients. These new funds will exclude any gunmakers and most gun retailers from BlackRock's socially responsible and exchange-traded funds. Firearm companies are just the latest addition to these funds which have historically excluded companies that produce cluster bombs, nuclear reactors and cigarettes. These gun-free funds also extend to BlackRock’s institutional investors who can now exclude gun stocks out of endowments and include gun-free indexes for employees.
BlackRock was inspired to develop gun-free funds following the massacre at Marjory Stoneman Douglas High School in Florida and was further spurred on by the ensuing protests for gun control. The move was also initiated after BlackRock’s chief executive, Larry Fink, shared the statement that financial performance was not enough and that BlackRock must also "make a positive contribution to society."
Firearm-Free Investment Funds
BlackRock is Allowing Clients to Invest in Gun-Free Funds
Trend Themes
1. Ethical Investment - The creation of gun-free funds by BlackRock offers an opportunity for ethical investment by excluding gunmakers and gun retailers.
2. Socially Responsible Investing - BlackRock's new funds extend their socially responsible investing approach by excluding firearm companies.
3. Corporate Social Responsibility - BlackRock's move to develop gun-free funds aligns with the growing focus on making a positive contribution to society.
Industry Implications
1. Financial Services - The financial services industry can explore innovative ways to create more ethical investment products and cater to the demand for socially responsible investing.
2. Investment Management - The investment management industry has an opportunity to incorporate gun-free funds into their product offerings and attract clients seeking ethical investment options.
3. Asset Management - Asset management firms can seize the disruptive innovation opportunity by developing and promoting gun-free indexes for institutional investors.