The experience influenced his decision to start a company that would invest clients' money while also incorporating comprehensive risk management. He was successful at the bank until 1986, when his department lost $100 million due to his incorrect prediction about interest rates. įink added "by some estimates" $1 billion to First Boston's bottom line. At First Boston, Fink was a member of the management committee, a managing director, and co-head of the Taxable Fixed Income Division he also started the Financial Futures and Options Department, and headed the Mortgage and Real Estate Products Group. Career 1970 to 2000 įink started his career in 1976 at First Boston, a New York-based investment bank, where he was one of the first mortgage-backed security traders and eventually managed the firm's bond department. He then received an MBA in Real Estate at the UCLA Anderson Graduate School of Management in 1976. He earned a BA in Political Science from UCLA in 1974. He grew up as one of three children in a Jewish family in Van Nuys, California, where his mother Lila (1930–2012) was an English professor and his father Frederick (1925–2013) owned a shoe store. Early life and education įink was born on November 2, 1952. He sits on the boards of the Council on Foreign Relations and World Economic Forum. In April 2022, Fink's net worth was estimated at US$1 billion according to Forbes Magazine. BlackRock is the largest money-management firm in the world with more than US$10 trillion in assets under management. He is the current chairman and CEO of BlackRock, an American multinational investment management corporation. Laurence Douglas Fink (born November 2, 1952) is an American billionaire businessman. In 2022, BlackRock, Vanguard and SSGA owned 23% of S&P 500 companies, a figure which could potentially be closer to 37% when considering pension funds, according to recent academic research.Īll three have announced plans to pass on their proxy voting powers to investors over the past year, with SSGA recently extending these powers to 82% of eligible passive ETFs and mutual funds.ĭespite this, it is widely anticipated investors will continue to rely on their fund manager to make the proxy voting decisions on their behalf.University of California, Los Angeles ( BA, MBA) It comes as the focus on the voting practices of the ‘Big Three’ has arguably never been higher while the impact of passive power is becoming increasingly scrutinised. Meanwhile, BlackRock founder, chairman and CEO Larry Fink did not mention ESG once in his annual letter to shareholders, as he attempted to cater to both pro and anti-sustainability investors. Last December, Vanguard withdrew from the Net Zero Asset Managers (NZAM) initiative, a major investment industry group created to battle climate change, stating it wants to improve clarity for its investors. Since then, asset managers have been attempting to convince anti-ESG states in the US of their non-green credentials. On social topics, BlackRock and SSGA supported 55% and 60%, respectively, while Vanguard supported 27%.īlackRock has taken the brunt of the ESG backlash in the US with Republican states boycotting firms such as UBS Asset Management and BNP Paribas Asset Management for excluding certain sectors from their ESG products. The trend also played out across other themes, with Vanguard reporting seven out of 23 key environmental proposals (30%) while BlackRock and SSGA supported 57% and 61%, respectively. Most notably, Vanguard voted against all resolutions on civil rights and racial equity as well as environment-related issues other than climate.īlackRock voted in support of 70% of civil rights and racial equity resolutions while SSGA shows its highest level of support for human rights and ethical use of technology, supporting over 90% of resolutions, the research found. The trio, which have all been heavily targeted by the anti-ESG movement in the US, voted differently on more than two-thirds of key resolutions with Vanguard living up to its record of low backing for social and environmental issues. Vanguard’s level of support for key ESG resolutions is less than half of its two closest rivals BlackRock and State Street Global Advisors (SSGA), Morningstar research has found.īlackRock and SSGA expressed proxy voting support for 55% and 60% of 100 ESG-related resolutions marked as “key” by Morningstar – in line with the 20 biggest US asset managers at 59% – while Vanguard supported just 28% of the resolutions.īlackRock, Vanguard and SSGA – known as the ‘Big Three’ – represent 43% of the US fund market with a combined $10.3trn assets under management (AUM), $8.9trn of which is in passive funds, according to Morningstar Direct.
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