BlackRock’s MyMap range has marked its third anniversary with resilient performance since launch, despite market volatility in the wake of the COVID-19 pandemic and additional turbulence resulting from the conflict in Ukraine.
With AUM rising to over £710 million in May 2022 and annualised returns across all four funds reaching 6.12% on average3, MyMap has consistently navigated volatility and provided stable returns for investors.
The MyMap range is designed to help investors achieve their financial goals through simple, cost-effective funds matched to their risk appetite. The funds are built using ETFs and index funds, investing across an underlying universe of bonds, stocks, alternatives and cash. The funds are actively managed and rebalanced on a quarterly basis to weather the changing market environment.
On the third anniversary of the launch of its MyMap range, BlackRock has extended the range to include the MyMap 3 Select ESG Fund and the MyMap 7 Select ESG Fund, for investors who want to align their sustainability preferences with their investment goals via low-cost multi-asset indexing.
The new launches complement the existing range of six funds, launched in May 2019, adding two new risk profiles catering to different risk appetites, whilst offering investors more choice in how they meet their sustainable investing goals.
The new funds target a reduction in each portfolio’s carbon emissions intensity by 30% relative to an equivalent asset mix, as measured in each calendar quarter, as well as an ongoing reduction in their carbon emission intensity, over five-year periods on a rolling basis. Both new funds are required to invest at least 80% of their corporate assets into ESG exposures. The funds will also invest a minimum of 80% of their government bond assets into ESG exposures with an ESG sovereign rating of BB or higher as defined by MSCI.
Heather Christie, Head of UK Advisers and Platforms at BlackRock, says: “Since we launched the MyMap range three years ago, global markets have been pushed to the limit, with the stresses of the global COVID-19 pandemic and the outbreak of war in Ukraine leading to significant market volatility and uncertainty for investors. During this time, MyMap has delivered resilient, annualised returns and offered a winning formula for investors.
“As interest rates continue to rise and with inflation hitting a 40-year high, it’s now more important than ever for people to consider investing to mitigate the eroding impact that inflation can have on their hard-earned savings. For investors moving out of cash, multi asset funds like MyMap are becoming increasingly popular as they offer simple and cost-effective approaches to investment.
“Adding new ESG focused funds into the MyMap range continues our commitment to providing choice and means people can benefit from being invested in a low-cost range of funds whilst expressing their investment objectives in a sustainable way.”
In addition, the investment objective of MyMap 5 Select ESG Fund has also been enhanced to strengthen the ESG outcome of the Fund and to ensure that all three ESG-focused funds in the range share the same investment approach.
The Fund incorporates the same target to reduce the portfolio’s carbon emission intensity by 30%, an ongoing reduction in its carbon emission intensity as well as the requirements for a minimum investment in ESG strategies. The risk and return profile of the Fund has not changed as a result of the changes.
Chris Eastwood, Co-founder and Co-CEO at Penfold, said: “We’re delighted to see BlackRock double down on ESG within the MyMap fund range. The MyMap name is increasingly synonymous with innovation and we’re excited to see how their approach extends into the ESG space.
“Demand for sustainable investment options continues to be a huge trend in the pensions sector with savers looking for funds that balance a range of risk appetites and growth potential with their values. We expect to see the new funds make a material difference to saving habits as strengthening the connection between saving into a pension and closing in on Net Zero can be a potent force for getting people to prepare for life after work.”
Andrew Stead, Director of Propositions, HUB Group, said: “Three years ago when we were looking for a range of low cost, multi asset funds the My Map fund range ticked all our boxes. We now use the funds as a core part of the investment proposition across our advised, non-advised and digital advice services to offer our clients the benefit of a risk managed approach in achieving longer term investment growth. We continue to value the relationship with BlackRock and their growing MyMap fund range.”