Florida's State Board of Administration (SBA) in Tallahassee Has Included Morningstar on Its Roster of "Scrutinized Companies

The Wealth Advisor Contributor
October 25, 2023

Florida's State Board of Administration (SBA) in Tallahassee has included Morningstar on its roster of "Scrutinized Companies that Boycott Israel." The decision was finalized during an October 25th meeting, with the proceedings evident from a broadcasted session.

The 2016 Florida legislation, updated recently, necessitates the divestment from any business named on this list. As a result of this adjustment, Morningstar now has a three-month window to halt any actions perceived as boycotting Israel by the SBA.

If Morningstar persists, then within a year from its latest listing on the "Scrutinized Companies that Boycott Israel" roster, the public fund must divest from all the company's publicly traded assets.

The exact reasons for Morningstar's listing remain unspecified in the meeting documents, but there was a mention of Morningstar's ESG research arm, Sustainalytics. Records indicate that, as of the end of June, the Florida Retirement System owned Morningstar stocks amounting to 26,343 shares, valued at roughly $5.9 million.

Previously in October 2022, Morningstar communicated its initiatives to counteract potential anti-Israel inclinations in their ESG research, a move prompted by the concerns of Jewish associations.

Morningstar's executive chairman, Joe Mansueto, voiced the company's firm stance against the Boycott, Divest, and Sanctions campaign. He appreciated entities such as JLens, Jewish Federations of North America, ADL, American Jewish Committee, Foundation for Defense of Democracies, and Louis D. Brandeis Center for Human Rights Under Law for their collaborative and insightful engagement.

He lauded their extensive knowledge on Israel and antisemitism, and Morningstar's Sustainalytics team for the in-depth analysis that propelled these constructive dialogues.

Reactions from Morningstar representatives regarding the SBA's recent decision are awaited. The Florida State Board of Administration is responsible for a whopping $241.4 billion in assets, of which the Florida Retirement System constitutes $188.8 billion.

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