BlackRock announced today the launch of its new Sustainable Global Allocation UCITS Fund in Europe, designed to be “a core sustainability holding” for investors, according to the investment firm.
According to BlackRock, the new fund is being introduced following investor demand for an ESG version of the firm’s $15 billion BGF Global Allocation Fund, one of the leading multi-asset portfolios in the EMEA market.
Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income and Head of the BlackRock Global Allocation Investment Team, said:
“We have launched the Sustainable Global Allocation Fund in response to client feedback for an unconstrained multi-asset strategy that can help investors navigate extended periods of heightened volatility whilst also expressing their sustainability preferences.”
Rieder added that the new fund utilizes the principles of the Global Allocation Fund, while also leveraging BlackRock’s proprietary ESG framework.
The fund will invest at least 50% of its assets securities classified as having positive externalities, and exclude securities with negative externalities, according to BlackRock’s proprietary externalities framework.
Additional sustainability features include an aim to achieve a lower carbon emissions intensity score for corporate issuers owned within the portfolio, compared to that of corporate issuers of the benchmark (60% MSCI All Country World Index / 40% Bloomberg Barclays Global Aggregate Index), and screens to limit exposure to investments in companies associated with fossil fuels, tobacco, controversial weapons, nuclear weapons, civilian weapons and violators of controversial business practices.
The Fund will be managed by BlackRock’s 30+ person Global Allocation Investment Team, led by Rieder, with experience managing unconstrained mandates and access to ESG experts across the firm to guide the investment framework.
“The new Fund satisfies client demand for a long-term sustainable investment approach from which, importantly, they can expect a similar risk and return profile to our legacy Global Allocation product.”