If you were a top executive of the world’s largest asset manager and a client withdrew US$8.5b from your management would you:

a) Be disappointed and then talk privately to the ex client about their rationale, or

b) Issue a public letter to the ex client condemning their actions as putting short term politics over fiduciary obligations and urging them to reconsider their decision?

Blackrock chose option b).

The Texas Permanent School Fund pulled $8.5b, announced last month.

Blackrock’s response was swift. As reported in the Austin-American Statesman:

At the quarterly earnings call just held this week, Larry Fink, CEO of Blackrock, reiterated the points above. He did not sound happy.

This sounds as if Blackrock senior leadership are fearful of something. Their reaction was emotionally charged. That is not a good way of dealing with a client who has every right in the world to stop using Blackrock for asset management services should they wish. They don’t have to justify their actions to Blackrock if they want their money back.