BlackRock has introduced an ESG version of its hugely successful Global Allocation Fund (GAF) in Europe.
The new Sustainable Global Allocation UCITS offering will give conscientious investors access to a sustainability-focused variant of the American giant’s $15 billion Business Growth Fund GAF.
At least 90% of its holdings are ESG-rated and part of its focus will be to achieve lower carbon emissions within the corporate world.
It will limit exposure to investments in companies associated with fossil fuels, tobacco, nuclear and civilian weapons, and controversial business practices.
The move has been prompted by calls from the European market for an “unconstrained multi-asset strategy that can help investors navigate extended periods of heightened volatility while also expressing their sustainability preferences.”
BlackRock’s CIO of Global Fixed Income, Rick Rieder, said: “We’ve leveraged our proprietary ESG framework to create a unique offering that will serve as a critical source of return for investors in the coming years.
“The new fund satisfies client demand for a long-term sustainable investment approach from which they can expect a similar risk and return profile to our legacy Global Allocation product.”
The asset management firm’s GAF is one of the leading multi-asset portfolios in the EMEA region.
It has developed an enviable track record of delivering attractive risk-adjusted returns for clients since its launch in January 1997.
The new fund incorporates a robust ESG framework throughout its investment process to meet key sustainable standards in Europe.
It is a Sustainable Finance Disclosure Regulation-compliant Article 8 fund which meets requirements guiding sustainable investing in France, Belgium and Germany.
It will invest at least half of its assets in securities classified as having positive externalities (PEXT) and exclude those with negative externalities (NEXT).
Rieder will head up the project alongside experienced investors Russ Koesterich, David Clayton, Kate Moore, Randy Berkowitz and Sarah Thompson, and they will be part of a Global Allocation Investment team made up of more than 30 experts.
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