BlackRock has expanded its multi-asset product range with the launch of a new ESG-focused strategic growth fund.
BlackRock says this launch is in response to “growing appetite” among UK pension schemes for long-term growth strategies that offer more sustainable investment options.
This fund will integrate environmental, social and governance (ESG) considerations into the investment process. The portfolio management team have also committed to investing at least 5 per cent of the fund’s assets into ESG themes, such as renewable energy.
The fund aims to deliver long-term growth with two-thirds of the volatility of equities. It will invest in bonds, equities, and non-traditional assets, such as Reits (Real Estate Investment Trusts), infrastructure equities, and gold.
It will be run by Adam Ryan, part of the BlackRock diversified strageies team.
BlackRock multi asset investment strategist Dominic Byrne says: “UK pension funds need capital growth, whether you are a UK trustee looking to assist a DB scheme in their efforts to meet future liabilities, or a member of a DC scheme looking to fund spending through retirement.
“Rather than looking to a single asset class such as global equities to facilitate this, multi asset funds that place greater emphasis on staying invested in a range of long-term growth opportunities can help scheme design.
“Through its innovative strategic asset allocation policy, this fund seeks to provide this long-term exposure to a range of risk assets with only two-thirds the volatility of equities over an investment cycle.”
