Investors warn gun industry there is 'more to come', as reform pressure mounts

BlackRock's chief executive, Larry Fink's January letter on social purpose is being tested as gun reform pressures grow -  Pedro PARDO
BlackRock's chief executive, Larry Fink's January letter on social purpose is being tested as gun reform pressures grow - Pedro PARDO

Wall Street institutions are undertaking an unprecedented review of their gun-related investments following the recent mass shooting in Florida.

Some of the world’s biggest banks and investment funds are considering reducing their ties with gun makers and firearms retailers in the wake of the massacre, which killed 17.

A senior source at a top fund manager told The Sunday Telegraph that there is “much more to come” from investors. One source said statements regarding ethical concerns and financial risks had already gone further than ever before.

A leading figure in determining how ethics rules are applied to Norway’s $1 trillion sovereign wealth fund said that it is highly likely that opposition politicians will press for restrictions on firearms investments.

US gun ownership demographics

Wall Street’s reaction follows a social media storm in the wake of the Florida school shooting. It also comes after a letter from the head of BlackRock, the world’s biggest investor, calling for companies, both public and private, to serve a social purpose.

Previously, many investors had pursued a line of “quiet diplomacy”. Calls from major pension funds to divest from gun-related assets have also mounted. In the wake of the Sandy Hook school shooting, Calstrs, the large Californian pension pot, divested from gun maker Remington Outdoor. The firm has since filed for bankruptcy. On Thursday, American Outdoor Brands reported sales of guns were down by 33pc.