03:30 PM EDT, 03/19/2024 (MT Newswires) -- (Updates with BlackRock's ( BLK ) comments in last two paragraphs)

BlackRock ( BLK ) was informed Tuesday that the Texas Permanent School Fund is terminating a contract to manage $8.5 billion in assets, the chairman of the State Board of Education said.

"Terminating BlackRock's ( BLK ) contract ensures PSF's full compliance with Texas law," Chairman Aaron Kinsey said in a statement posted on X.

Kinsey said that the Texas Government Code "prohibits state investment in companies like BlackRock ( BLK ) that boycott energy companies."

BlackRock ( BLK ) criticized Kinsey's decision as "unilateral and arbitrary" and said the action "jeopardizes Texas schools and the families who have benefited from BlackRock's ( BLK ) consistent year-over-year outperformance for the Texas Permanent School Fund."

"The decision ignores our $120 billion investment in Texas public energy companies and defies expert advice," BlackRock ( BLK ) said in a statement emailed to MT Newswires. "As a fiduciary, politics should never outweigh performance, especially for taxpayers."

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