Funds Management News

BlackRock launches ESG global bond fund

Posted by Anton Murray Consulting on . Posted in Funds Management News


BlackRock’s Australian arm has partnered up with VicSuper to develop and launch its new unlisted iShares ESG Global Bond Index Fund, with the companies reporting increased demand from Australian investors for sustainable products. The fund is benchmarked to a customised Bloomberg Barclays MSCI Global Aggregate SRI Select ex-Fossil Fuels Index (Australian dollar hedged). It applies the MSCI’s SRI method, excluding issuers across eight filters: tobacco, alcohol, gambling, military weapons, civilian firearms, nuclear power, adult entertainment, genetically modified organisms (GMOs) along with fossil fuels.

The last filter aims to exclude companies with an industry tie to fossil fuels, in particular, reserve ownership, related revenues and power generation. The fund is also excluding sovereign and government-related issuers with an MSCI ESG government rating below “BB”. The fund is designed for ESG-aware investors seeking a core fixed income exposure to global fixed income securities, BlackRock said, following the launch of its Australian Bond Index Fund in February.

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