(Reuters) -Republican-led Tennessee and asset manager BlackRock settled a dispute over the company's use of ESG factors in its investment decisions, according to a statement by the state's Attorney General Jonathan Skrmetti on Friday.

Tennessee said it settled a lawsuit with BlackRock Inc. after accusing the world’s largest money manager of allegedly breaching consumer protection laws by making “misleading” statements about its ESG investment strategy.

Investors should compound their investments “at an attractive yield in fixed income, with relatively low volatilities attached to it,” BlackRock (BR) Global Fixed Income Chief Investment Officer Rick Rider said Thursday.

BlackRock posted a 21% fourth quarter jump in profit after buoyant equity markets increased income from fees and drove its assets to a record high of $11.6 trillion, the world's largest money manager said on Wednesday.

BlackRock set a record for net inflows in 2024, with more than $600 billion.

BlackRock Inc. is tapping into a fast-growing corner of the options-powered ETF world with an offering aimed at Wall Street investors bracing for the S&P 500 to tread water.

Asset manager BlackRock's senior executive Mark Wiedman, who was touted to be a potential successor to CEO Larry Fink, is departing the firm, said two sources familiar with the matter.

Overseeing some $11.6 trillion, BlackRock is the world’s largest asset manager and houses around $700 billion managed for insurance companies. During the company’s third-quarter earnings call yesterday, Fink pointed to insurance as “one of the primary areas of growth for us.”

The settlement ends a lawsuit that was originally filed in December 2023 by the state of Tennessee under the Tennessee Consumer Protection Act. The suit alleged that BlackRock overstated the financial benefits of ESG-related strategies and didn’t adequately disclose its integration of ESG factors.

BlackRock ( BLK) shares rose 4% Wednesday morning as the asset manager posted better-than-expected quarterly results on record assets under management (AUM).

BlackRock’s profits rose and assets under management edged up to a record $11.55 trillion in the fourth quarter. BlackRock posted net income of $1.67 billion, up 21% from the same period a year earlier.

BlackRock Inc. attracted an annual record of $641 billion in client cash, underlining the firm’s global reach across public and, increasingly, private assets as it integrates multibillion-dollar acquisitions and reshapes its leadership.