The BGF Climate Action Multi-Asset Fund and the BGF Climate Action Equity Fund leverage BlackRock’s deep expertise in active sustainable investing with the objective of generating positive environmental impact.
As investors seek to align their climate values with investment goals, they are looking to identify opportunities with the potential to outperform traditional markets through the incorporation of climate-related financial catalysts and sustainable insights into their investment strategies.
Reflecting this trend, BlackRock has created an extensive and rapidly expanding range of sustainable active funds and strategies, across all asset classes, to help investors pursue their specific sustainable goals.
BlackRock’s latest launch is two new funds within its active sustainable range in EMEA, the BGF Climate Action Multi-Asset Fund and the BGF Climate Action Equity Fund, which provide investors with access to major climate themes that are expected to enable, and/or benefit from, the transition to a lower greenhouse gas emissions economy and to net zero carbon emissions. Both funds integrate ESG criteria into their investment processes and are classified as Article 9 under EU Sustainable Finance Disclosure Regulation (SFDR).
BGF Climate Action Multi-Asset Fund
- The BGF Climate Action Multi-Asset Fund is one of the first of its kind to take a truly multi-asset approach to investing in issuers striving to lower their greenhouse gas emissions across a diversified portfolio which includes equities, fixed income and alternative assets in areas such as clean power, resource efficiency, sustainable nutrition, biodiversity and clean transport.
- It aims to deliver a lower carbon emissions intensity score than its benchmark – the MSCI All Country World Index (65%) and Bloomberg Barclays Global Aggregate Bond Index (35%) – and intends to incorporate a year-on-year decarbonisation rate.
- The fund combines the macro thematic research and asset allocation skills of the BlackRock Multi-Asset Strategies and Solutions (MASS) Diversified Strategies Team with the stock selection capabilities of underlying specialists in equities and fixed income – making it possible to create a climate-aware portfolio without compromising financial goals.
Rupert Harrison, Portfolio Manager for Multi-Asset Strategies at BlackRock, said: “Investors are increasingly looking to align their climate priorities with their investment goals – a balance that can prove highly complex and potentially create challenges on many levels. In aiming to address this, a multi-asset approach can tap into a wide array of climate-related strategies to seek out the most attractive investment opportunities – and manage the risks – presented by climate change. By doing so, it aims to provide a smoother investment journey through diversification and careful risk management.”
BGF Climate Action Equity Fund
- The BGF Climate Action Equity Fund focuses on uncovering the long-term, disruptive structural winners driving the reduction of greenhouse gas emissions across the market cap spectrum.
- The fund invests in companies that provide solutions for the mitigation of, and/or adaptation to, climate change, or businesses whose propositions are in the process of becoming more resilient to the long-term risks presented by climate change and resource depletion.
- The fund provides access to the major climate themes across multiple industries including clean power, clean transportation, sustainable food, and resource efficiency across a universe of around 1,000 securities.
Tom Holl, Portfolio Manager within Fundamental Equities at BlackRock, said: “The Fund targets greenhouse gas emissions at source by investing globally in the sectors that are mitigating the most significant causes of CO2 emissions – such as power generation, transportation fuels, agriculture and industrial processes and waste. As the move towards a greener future picks-up pace, we are seeing many companies capable of enabling, as well as benefiting from, the transition to a lower greenhouse gas emissions economy. The strategy’s investment approach harnesses BlackRock’s extensive Thematics expertise with the aim of meeting the returns expectations of sustainability-minded investors.”